Recently, the US government issued a ban on US companies to sell hardware and software to ZTE in the next seven years. As is known to all, ZTE is the second largest telecom equipment supplier in China after Huawei, ranking fourth in the world.
According to sources, as early as January this year, ZTE knew that the United States might issue a ban on itself. If you want to manufacture a variety of devices, ZTE needs the US key hardware and software, including processors, memory, optical components, antennas, screens, operating systems, applications, from Google, Intel, Micron, Qualcomm and countless other companies. .
It is self-evident that the US ban has had a huge impact on ZTE, but it is not only ZTE, but other companies and Others.
What will this happen in the end? Let us listen to the views of all parties:
Reuters: ZTE may lose Android license
Reuters quoted sources as saying that the supply ban may cause ZTE to lose Android licenses. Simply put, it can't use Android on devices.
On Monday, the US Department of Commerce issued an injunction prohibiting US companies from selling hardware and software to ZTE within seven years. On Tuesday, US telecommunications regulators issued a new ban on government projects procuring equipment from companies threatening the US telecommunications network. This ban will affect both ZTE and Huawei.
The US Department of Commerce’s ban may cause ZTE to be unable to use Android software on its devices. According to sources, ZTE and Alphabet have already discussed the impact of the ban, but by the end of Tuesday morning, there are no clear conclusions about the use of Android.
Last year, ZTE shipped 46.4 million smartphones, making it the seventh largest Android phone maker in the world.
Vice President of Atherton Research: ZTE will file for bankruptcy
Jean BapTIste Su, vice president and principal analyst of Atherton Research, believes that after the ban is issued, the US technology industry cannot use ZTE products, and ZTE may be forced to close the factory and stop sales activities. ZTE has redesigned all its products for seven years (if possible) to find components that can replace American products.
Jean BapTIste Su pointed out: "The 5G revolution is crucial because there are no products that can be sold. ZTE will miss the revolution. ZTE is listed on the Hong Kong and Shenzhen exchanges. We expect ZTE to file for bankruptcy in the next few weeks."
"We also believe that many US companies will lose some revenue due to ZTE's impact, including Qualcomm, which supplies chips to most Chinese smartphone manufacturers."
At the same time that ZTE crashed, Huawei was the biggest beneficiary. However, Huawei has also been strictly reviewed by the United States and may encounter the same fate. Earlier reports said that Huawei’s activities in the United States have decreased and it has begun to reduce US employees.
Jean BapTIste Su believes: "Every mature or growing Chinese technology company should pay attention to the ban and make plans in advance. Once the US releases a ban on itself, it can respond quickly. These companies include Lenovo/Motorola, OnePlus, Oppo, TCL. Vivo and Xiaomi. On the other hand, LG and Nokia are looking for growth opportunities in the US and around the world, and their future seems to be brighter."
ZDNET: American consumers and businesses will also be injured
ZDNET published a commentary for the first time that the ban caused injuries to American consumers and businesses.
The ban clearly requires that US companies cannot sell "goods, software or technology" to ZTE, nor can they export to ZTE.
Obviously, the ban covers a wide range of not only semiconductors (such as Qualcomm mobile phone chips), but also licensed components, such as the Android OS from Valley Singer, and other products that are essential parts of software and hardware.
The article said: "The US Department of Commerce's ban effectively destroys ZTE's mobile electronic and communications business in the United States, and may destroy businesses in other places, as long as ZTE's products sold in these places use the components of the ban, It may be destroyed."
how to respond? ZTE may purchase core components from other Chinese companies, such as MediaTek or Samsung. But are these companies willing to sell components to their competitors and potentially hurt their reputation? this is a problem.
The article said: "Huawei HiSilicon may not help ZTE, if it does not become a banned person, it definitely wants to continue to be favored by the US Department of Commerce. Like ZTE, Huawei has also been investigated, but has not been fined so far. Exports are not restricted. But from the current situation, it is still possible to ban."
For ZTE, there is still a serious problem to face: unable to obtain Android license. ZTE can use AOSP and its own program store, just like Amazon. Or use the open source operating system TIzen OS. But what you can't do is not a good choice.
We can conclude that ZTE's Axon product line is in the US and many other parts of the world!
ZTE's mobile phone is very good, Axon 7 is very cost-effective, and dual-screen Axon M is also very interesting. It gives consumers and operators more choices to help developers get more revenue from the Android ecosystem. Qualcomm and other US companies also have business dealings with ZTE, and the scale is not small. They provide hardware and software to mobile phones.
This trend is disturbing and I really hope that the ban will not be the starting point, not the beginning. ZTE is one of only a few Chinese handset manufacturers to source key components from US companies. There are also Xiaomi, Oppo, and Lenovo.
Other Chinese companies may also be targeted, such as Foxconn and Quanta. They are not only ODM companies, but also provide services on behalf of US companies (such as Apple) to purchase key components used in many products, such as TVs, set-top boxes, IoT devices, consumer and enterprise network devices, PCs.
What we are talking about is just the tip of the iceberg.
It is really disappointing. Yes, ZTE should pay a fine of 1.19 billion US dollars. If ZTE’s “crime†is confirmed by the US Department of Commerce, a larger ticket may be issued. In any case, the final punishment is for US consumers and US companies, which resell ZTE products and sell components to ZTE.
If a Chinese ban is completely banned from purchasing components from US companies, it may lead to a sharp rise in the price of consumer electronics, making the monopoly become more serious. If foreign companies want to compete in the US market, they must have their own IP and be vertically integrated with the supply chain. Only a few companies can do it, including Samsung. Huawei, which is comparable to Samsung in terms of vertical integration, can manufacture its own semiconductors, screens, batteries, and storage components.
If the US Department of Commerce and the Trump administration continue to implement the same policy, the American people will never see such mobile phones imported into the United States, and US carriers will not sell them. Obviously, this is not the result of the hope of American consumers and American companies.
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