Thursday, December 1, 2016

Huawei's Problem in the U.S.

In the IBTimes report, Ken Manbert Salcedo said that Huawei's security concerns are stopping it from succeeding in the United States.

The Chinese electronics manufacturer may be the third largest in the world, but it looks like the company is facing a huge challenge in convincing U.S. carriers to support the smartphone, and this could certainly hamper Huawei’s effort in penetrating the market.

Over 80 percent of smartphones in the U.S. are distributed by mobile network carriers in the country. Huawei is is the third largest phone maker in terms of shipments just behind Samsung and Apple. Carriers partnering with Huawei seems like a good idea, and yet U.S. carriers are reluctant to work with the manufacturer because of its low brand recognition in the country and security concerns with Huawei’s networking equipment, sources told the Wall Street Journal.

Back in 2012, U.S. Congress recommended that carriers shouldn't use network equipment from Huawei as it might be a means for China to spy on American citizens. Huawei denied the accusations against them, but it hasn’t stopped carriers from worrying about potential spying by Beijing authority, according to Android Headlines.

Mobile chips being used by Huawei currently don’t comply with the cellular standard used by Verizon and Sprint. If the company tries to change its chips, it would be too costly. T-Mobile is also currently in a patent dispute with Huawei, making a partnership between the two nearly impossible. The only hope that the company has is AT&T which Huawei has already had talks with. There’s no word yet on a deal being made between the two.

No comments:

Post a Comment