China could take revenge on America for treating Huawei in a number of devastating ways – most likely it would target US companies that do business in the region, such as Apple. Greater China ranks third of the regions that generate the most revenue for the company, behind the US and Europe.
In addition, most of Apple’s supply chain consists of Chinese companies that produce key components, such as sensors, OLED screens, and other components used in the iPhone.
If Apple cannot rely on Chinese manufacturers, it may be forced to move to suppliers in the US or elsewhere, which may lead to an increase in iPhone prices.
In addition, some Chinese consumers have already held a growing “Boycott Apple” movement in retaliation, meaning that Apple may suffer permanent damage to its brand in the region as a result of the ban on Huawei.
Apple is not the only US company that is likely to feel an impact. Tech companies that rely on Huawei as a major player will also be injured.
“The announced rates, if implemented, will be the guts for technology companies and its suppliers,” said Wedbush Securities analyst Dan Ives.
Intel, Microsoft, Qualcomm Broadcom and Micron offer components or services used in Huawei products, while Corning glass and Dolby speakers are used in Huawei phones.
Which devices can be influenced by the decision?
Existing and new Huawei phones will be most affected when it comes to security updates.
These devices no longer have access to wireless security updates provided by Android, as well as new software versions, such as Google’s upcoming Android Q.
Google automatically sends Android security updates to device owners.
But Huawei devices are forced to use the open source version of Android, which means that the company will be aware on the day that security updates are issued and, as a result, must send to users manually.
This can make Huawei devices vulnerable to attacks or other security errors in the time it takes to download new security updates.
Huawei would also be omitted in future Android software updates. Because it uses an open source version, it cannot legally market its phones as Android devices.
The ban will most likely also affect the Mate laptops from Huawei.
The computer company of Huawei is highly dependent on chips from Intel, Qualcomm and others, as well as the Windows operating system from Microsoft.
Because these companies do not do business with Huawei, it is not yet clear what this means for the company’s future laptops.