Google Losses $425 Million After The Ban On Huawei Smartphones
According to the well-known media platform Business Insider, Nomura Instinet research firm has recently estimated that the tech giant Google’s revenue will fall from $375 million to $425 million as it no longer allows the well-known Chinese smartphone manufacturer Huawei to use Android. Hence, the users of the Chinese firm now cannot download any applications from the tech giant Google’s Play Store. Nomura Instinet also reported that the well-known Chinese smartphone maker Huawei has about 500 million smartphone users globally, among which 52% are in China, where the tech giant Google and its famous app store, of course, Play Store, have been banned for a long time and has not suffered much damage. So, the significant influence mainly comes from the markets like Europe and Asia. Specifically, the tech giant Google’s 2018 Play Store revenue is $7 billion, of which $388 million is only from Huawei smartphones. The Chinese smartphone manufacturers operating in Europe help the tech giant Google gain a hefty amount of $190 million, while in Asia (except China), it is $137 million. Hence, the US-based tech company, the tech giant Google, will lose this large sum of money after blocking Huawei. In addition, some of the consequences that the tech giant Google may suffer from banning the Chinese giant Huawei are the risk of the Android market share falling and the door to the Chinese market will be closed. The world’s largest telecommunications equipment maker, Huawei Technologies, is seeking a loan from abroad, listed in USD or Hong Kong dollars, as the well-known media portal Bloomberg has quoted a close source, and the term of this company is about 5-7 years. While the conversation between the well-known Chinese smartphone maker Huawei and the lending group is still in the early stages, there is no guarantee that this will happen. If it succeeds, the value of the loan and the identity of the participating banks could reveal more about the market’s judgment of the Chinese giant Huawei’s financial strength. Apart from all these things, the US government simply put China’s telecommunications technology group Huawei on the blocklist last week, and now the Chinese smartphone maker Huawei is facing many charges by the US Justice Department for economic surveillance activities as well as for violating orders, the US sanctions against Iran and more. So, what do you think about this? Simply share all your views and thoughts in the comment section below. And if you liked this post, do not forget to share this post with your friends and family.
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