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Author Topic: Ban on Huawei hurt U.S. tech firms  (Read 16082 times)

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Ban on Huawei hurt U.S. tech firms
« on: August 02, 2019, 05:32:27 AM »

While there is no question that Huawei's placement on the U.S. Commerce Department's Entity List has hurt the manufacturer the most, something pretty big is being overlooked. The firm's U.S. suppliers are losing out on business that brought in $11 billion last year. That is the amount of money that Huawei paid U.S. suppliers in 2018, and it won't be replaced by doing business with another company. Chip designer Qualcomm is a good example of how the Huawei ban is actually hurting American firms.

Yesterday afternoon, according to MarketWatch, Qualcomm reported its earnings for the fiscal third quarter that ended in June. Revenue was down 13% and net income declined by 34% on an annual basis. Those numbers don't include the billions that Apple paid the company to settle all legal disputes, obtain a six-year product license (with a two-year option) and procure a multi-year chip supply agreement. So Qualcomm's normal business operations had a very poor showing from April through June, and it was May 16th when Huawei was placed on the Entity List.


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