FROM THE EDITOR
Gloomy outlook for
Huawei in Europe?
I have heard rumblings about the outcome of the Supply Chain Review, and it doesn’t look
good… if you are Huawei. e Chinese company became the third-largest semiconductor buyer
in 2018 and almost half of its revenues ($100 billion) are now derived outside of its domestic
market. If the rumours are true it will have huge rami cations on several fronts.
Will China retaliate for a start? Several US companies are reliant on China
for products and services. Apple’s devices are assembled there, as are Cisco
routers, Dell computers and several of the industry’s large telephony vendors
produce their handsets on Chinese soil. According to Gartner, Huawei
spent $26 billion on microchips in 2018 alone! Big companies such as Intel,
Microsoft, and Qualcomm (alongside sixty-something others of that ilk)
have signi cant exposure to the company.
Vodafone publicly stated if it is forced to remove Huawei kit from
their network it would not only cost them hundreds of millions but
it would set our 5G ambitions back signi cantly to a point where
we would likely trail other key 5G markets. As we transition into
a huge period of uncertainty on a political front it is crucial we
stay ahead of the pack so we continue to attract investment into
the UK.
e big question, who will pay for all of this rip and replace
activity? Ultimately it will be the end consumers who will pick up the
bill with in ated prices. e holes can clearly be lled by other vendors
but several suppliers out there feel slightly gutted, Huawei products are
extremely well thought of in the networking community, and they are
currently a clear leader in 5G.
I spent a fair bit of time on their stand at Mobile World Congress
last month and it’s clear they have come a long way from that
unheard of company who make cheap smartphones. In the last
ten years their devices have slowly risen up the ranks and are some
of the best out there. It was all eyes on Huawei at Mobile World
Congress last month as they came under re, see the MWC review
on page 44.
Enjoy the issue.
Editor
Editor David Dungay
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M 07799 654400
david@commsbusiness.co.uk
Contributor Ian Hunter
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Managing Director Paul Johnson
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paul@commsbusiness.co.uk
Sales Director Mat Swift
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mat@commsbusiness.co.uk
Area Sales Manager Moh Lalani
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moh@commsbusiness.co.uk
Production Manager Jo Claydon-Smith
T 01732 748064
jo.claydon-smith@markallengroup.com
Managing Director, MAB Jon Benson
Designer Hannah Walsh
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