Is the US shooting itself in the foot by banning Huawei?

[plawolf]

Apple's market share increased.

Only for 2018 overall, and that despite the big drop in Q4. Pretty telling how big of a impact Trumps trade war had despite no official Chinese action targeting Apple.

Now imagine what it would be like if Beijing went after Apple like Washington is going after Huawei.

 

[taxiya]

and the others (Nokia, Ericsson, Cisco) excludes consumer BU ?

I am not aware of these three having any consumer business any more. For example, Nokia and Ericsson have sold their phone and PC modem business many years ago. Never heard of Cisco having such business at all.

 

[taxiya]

What about Samsung?
I had a quick glance at the comments section in the article you posted and found one writer who disagreed with the article.

Samit Basu said, "..... Samsung is actually ahead of Huawei in the equipment race.......
es, it is true that Ericsson and Nokia are falling behind Huawei, but not Samsung, Samsung is actually ahead of Huawei in 5G equipment race.

Samsung currently holds a 3 month lead over Huawei in mid-band 5G, but a whopping 2 year lead over Huawei in mmwave 5G.............
Yes, it is true that Ericsson and Nokia are falling behind Huawei, but not Samsung, Samsung is actually ahead of Huawei in 5G equipment race.
Samsung currently holds a 3 month lead over Huawei in mid-band 5G, but a whopping 2 year lead over Huawei in mmwave 5G.

Anyway it prompted me to investigate this viewpoint further and found

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Samsung Electronics is smoothly implementing its strategies to stay ahead of the game in the 5G mobile communication network equipment market.

According to the telecommunication equipment industry on May 2, Samsung Electronics received the approval of the US Federal Communications Commission (FCC) on an indoor router for next-generation 5G mobile communication services.

Samsung Electronics is currently working on 5G commercialization by partnering with Verizon in the United States. In January, Samsung Electronics and Verizon signed a contract on the supply of 5G communication equipment. Verizon plans to launch 5G commercial service for the first time in the world in the second half of this year. Since July last year, the US mobile carrier has implemented a tentative 5G fixed wireless access (FWA) service in 11 cities across the United States. Samsung Electronics provided telecommunications equipment to seven cities, including Sacramento, the city in which Verizon will launch its first 5G commercial service.

The 5G FWA service is a technology that directly provides 5G-based ultra-high-speed mobile communication services to each household wirelessly. The service can make it easy to build a fast network in a large land area like the United States because it does not need work to lay optical cables underground and licensing or permitting processes for the work.

Since the United States has a large land area and people live mainly in single houses, about 10% of total households use broadband internet services based on optical cables. For this reason, it is necessary to realize 5G services through the FWA method which sets up a 5G router in each home and receives 5G signals via the router and sends them to terminals. Instead of installing a communication network in every building, a 5G router is installed in a building and an antenna is set up outdoors to connect with a 5G base station wirelessly.

The 5G router approved by the FCC this time allows 5G services to be wirelessly enjoyed in a home. Earlier, in February and March, Samsung Electronics’ 5G equipment was approved by the FCC.

This time, the company received the approval on an indoor 5G router. "We will be able to provide services such as autonomous vehicles and smart homes based on speed up to 20 times faster than that of the 4G long term evolution (LTE) in the 5G era," an industry expert said. “We will provide an environment where 5G services such as smart homes can be used in American homes."

In the meantime, "Competition to realize the world’s first 5G commercialization is further intensifying. It will record a 20% market share in the equipment market," said Kim Young-ki, CEO of network business at Samsung Electronics in the Mobile World Congress (MWC) 2018 the world's largest mobile exhibition held in February. “Samsung Electronics will record a 20% share in the world network equipment market in the 5G era.”

Simple answer is that Samsung is new comer, although it develops fast, but no where close to Huawei, Ericsson and Nokia for the moment. It may become another black horse like Huawei (10 years ago), but that would be at the end of 5G, pretty much like Huawei started as a black horse at mid of 4G and becomes lead at the end of 4G. It takes time for Huawei so would it take Samsung.

The so-called lead by Samsung (and true to anybody) is due to the demand of trail-operator's preference. "Samit Basu" failed to realize that other vendors great lead (in other bands etc.) over Samsung in trail network that Samsung is not in.

The general view for the moment in the industry is that Huawei has the lead without doubt. The view is not final though and will only be clearer and definitive when 5G moves from trail to general deployment in a year (2020).

 

[taxiya]

Two things to add:
First, it is critical to consider IP ownership, Qualcomm, Ericsson and Nokia owned most of IP in 3G that prevented Huawei's rise in 3G building. In 4G, China's portion of IP increased drastically (ZTE and Huawei) that enabled them to rise to significance but not dominance as bigger chunk is still in the hands of the three. 5G is a turning point where Huawei alone overtakes Ericsson and Nokia in IP ownership. Only Qualcomm is left being the nr. 1 (from my weak memory).

The thing is that, even if Huawei and ZTE are banned by countries, the 5G network built will still be partially based on Huawei and ZTE's IP and money goes to Huawei and ZTE's pocket. We know that IP charges are much more profitable than actual hardware and software realizing the IP, as we have seen in PC and smartphone industry.

Second, Ericsson and Nokia are safe in China for the moment as long as major EU countries (Germany, France, Italy and Spain) do not join in the circus, and of course Sweden and Finland. Otherwise, the two will be the collateral damages in a fight they don't want. For the moment I heard one French minister spoke of ban while a Swedish military strategy researcher playing the drum. I hope Ericsson will lobby him to shut up.​

 

[Klon]

Apple's Chinese market share increased by only 0.4% compared to 2017; this is probably just statistical noise. Shipments dropped by 2.5 million units. In contrast, Huawei's market share increased by 5.9%; shipments also rose by 14.3 million units. Huawei is eating Apple's lunch in China.

The very fact that Apple's market share remained steady (slightly increased) means that Huawei's improvement wasn't at Apple's expense.

If what's being said is that Huawei is performing better than Apple in China, sure, that's true. However, it isn't doing so by taking Apple's market share, at least so far.

 

[advill]

Business is "War" and the victor (& importantly with reliable Alliances) can eventually be victorious, depending on strategies and tactics employed. Some Western idioms: "Fools rush in" & "Patience is the Mother of Virtue". An added interesting philosophy by Chuang Tzu "Everyone knows the use of usefulness; nobody understands the usefulness of the useless" .......

 

[AssassinsMace]

Awww! Canada feels like it's being bullied.

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I've been watching some Canadian news on YouTube and I haven't once seen any Canadian pundit acknowlege the perception from China which is everything the Canadian angle accuses China that this is all about political hostage taking. They ignore it so to them they're the innocent being bullied for no reason. Now they fired the Canadian ambassador to China because he didn't fall in line.

 

[ZeEa5KPul]

Now they fired the Canadian ambassador to China because he didn't fall in line.

They didn't fire him, they purged him for thought crime. They have the nerve to badmouth Chinese "state-media", but nowhere else on Earth will you find such perfectly regimented and uniform messaging as you will in Western mainstream media. Propaganda par excellence.

Trudeau should go back to teaching kindergarten, though it's difficult to see what he can teach those more knowledgeable than himself.

 

[Gatekeeper]

Awww! Canada feels like it's being bullied.

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I've been watching some Canadian news on YouTube and I haven't once seen any Canadian pundit acknowlege the perception from China which is everything the Canadian angle accuses China that this is all about political hostage taking. They ignore it so to them they're the innocent being bullied for no reason. Now they fired the Canadian ambassador to China because he didn't fall in line.

Talk about propoganda! The news reader said and I quote "China are holding 3 Canadians against their will. And one Canadian on "alleged drug charge"
What a farce. Didn't he get the memo that this guy had criminal records in canada for a.... let me see ... drug offence! Im lost for words.
This and the sacking of the ambassador. If China had done that to their ambassador, you can imagine the western MSM will go overtime to spin this as another example of authoritarian dictatorship will do anything to stop descent, and demonise China, and have a Nobel prize readied for the ambassador for being so brave to speak truthly and freely!

 

[localizer]

US always tells others to not interfere with companies but now the one showing that it is more than capable in meddling than anyone is the US.