In December, Chinese corporations ran a small boycott against the Apple iPhone. At that time, Canadian police officers had just arrested Huawei Meng Wanzhou financial director on the basis of an arrest warrant in the United States. Several Chinese companies began subsidizing the purchase of smartphones by local companies, while those who bought the iPhone. A week later, Apple lowered the iPhone's wholesale price in 2018, and the latest data from April showed that Apple turned the corner of the country. UBS analyst Tim Arcuri noted that the delivery of iPhone devices to China last month fell by 3% year-on-year. It does not look like anything for the Cupertina gang to cheer until you compare it to the much higher drops seen over the previous months.
But if Apple turned the corner in China, it might come to the wall. According to BuzzFeed, Apple's boycott is back in China. Why? Since yesterday, President Donald Trump declared an extraordinary situation because of threats to US technology. As a result, state carriers can not install network equipment of foreign companies that are considered a threat to US national security. The executive order does not mention Huawei, but is clearly directed directly at the global leader in online equipment. In addition, the US has put Huawei and its 70 affiliates on a list of companies that can not buy American technology without a license issued by the US government. As a colleague of national security threats ZTE learned last year, when it was the subject of US export bans, not being able to buy parts of the US could seriously damage the Chinese tech company. But Huawei has the advantage of designing its own chips and it was rumored to have developed an in-house alternative to Android.
The news of the national extraordinary statement came after President Huawei Liang Hua told Britain that Huawei would sign a "non-spy" document with any country. The fear is that the communist Chinese government might demand that at any time a technology company in the country help in obtaining intelligence. Rumors that Huawei has built up hacking machines for its products for the explicit purpose of connecting with the Chinese government has never been proven, and the company has denied ever spying on that country.
Huawei was found guilty in the civil court for theft technology of T-Mobile
Although there may not be any evidence of such spying, Huawei is not exactly an angel (what is a multinational company?). In January, the US Department of Justice filed an indictment against the company and some of its affiliates for bank fraud and other crimes; Huawei reportedly worked with Iran, who broke international sanctions and tried to conceal it. In addition, Huawei faces charges of stealing the technical secrets of T-Mobile. In litigation that was passed a few years ago, the court awarded the carrier almost $ 5 million to a Chinese company. Huawei was found guilty of theft of parts and business secrets related to robot testing called "Tappy."
The Chinese consumer response to the executive command on Wednesday was furious with several advances in the idea of renewing boycott on the iPhone. One Weibo subscriber wrote: "Functions in Huawei are comparable to Apple iPhones or even better. We have such a good alternative to smartphones, why are we still using Apple?" Another Chinese consumer has released from his iPhone: "I feel guilty of seeing a trade war. When I have the money, I'll change my smartphone." One more comment was made about Huawei's logo. "I think Huawei branding is incredible, cuts an apple into eight pieces."
While Huawei is a global provider of networking equipment, it is at the forefront of the smartphone industry. During the first quarter of this year, Canalys reported that Huawei smartphone deliveries in China rose 41% compared to the same period last year and reached 29.2 million units. The country sells more than one smart phone bought. Meanwhile, during the same quarter, Apple's sales in China declined by 30% year-on-year, with its market share dropping to 7.4% from 10.2% a year earlier. This put Apple on the fifth place in the country after Huawei, Oppo, Vivo and Xioami. And if there is a wall that prevents Apple from continuing its recovery in China, numbers in the second quarter could be even worse.