Following the event that sees heightened tension between the United States and China that subsequently led to sanctions against the latter’s biggest tech company, TF International Securities analyst, Ming Chi-Kuo, voiced his opinion over the matter. And as expected, it’s not looking good for Huawei.
In the best-case scenario, the analyst foresees Huawei losing a significant market share in China, considering the fact that it will lose touch to advanced hardware critical in its business.
At the worst-case scenario, Huawei could altogether step away from the smartphone trade due to the same reason as aforementioned and at the expense of hampering technological growth due to loss of a massive competition.
While the latter could still be offset should MediaTek managed to snag the spot of becoming a necessary hardware provider for Huawei, the presence of Qualcomm, which appears to offer the superior component than the former, poses a major concern.
That could mean that, even if Huawei survives the penalties imposed to it moving forward from September 15, 2020, the giant tech company might find it hard to compete, considering the less-than-stellar product that it would offer to consumers.