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Embattled Huawei anticipates limited impact on local operations

Embattled Huawei anticipates limited impact on local operations

Although it cannot officially comment on the intentions of South African networks, multinational ICT firm Huawei does not anticipate any major impact from the US ban and reports of mobile networks in Asia and Europe cancelling orders, on the South African market.

On 22 May CNN online reported that mobile networks in Asia and Europe are suspending orders for Huawei smartphones, following the recent decision by the US to restrict the company's access to American technology.

CNN added that Huawei can no longer source software or components from US suppliers without a license, and that while existing devices are unaffected, the restrictions "threaten future Huawei products and its leading position in building super-fast next generation 5G networks."

Huawei stated that it is against the decision made by the Bureau of Industry and Security (BIS) of the US Department of Commerce, and will immediately seek to "find a resolution to this matter."

"This decision is in no one's interest. It will do significant economic harm to the American companies with which Huawei does business, affect tens of thousands of American jobs, and disrupt the current collaboration and mutual trust that exist on the global supply chain," stated Huawei.

The company added that the US Commerce Department will allow Huawei Technologies to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets.

Huawei stated that it will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally.

"We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally," it added.

Huawei Founder Ren Zhengfei has stated that there is likely to be a small impact on the business globally and expects the company will still maintain around 20% growth.

Huawei added in its statement: "Huawei has been working for some time now to mitigate the impact of the US ban, this includes our South African operations. We have diversified our global supply chain as part of our business continuity management processes. In South Africa, we will continue to serve our all our customers and contribute to the ICT sector with vigour, as the fourth industrial revolution is a key economic focus for growth and social development."

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