Huawei CEO says China shouldn’t punish Apple
Ren Zhengfei, the CEO and founder of embattled Chinese tech company Huawei, is against any retaliating action on US rival Apple.
The CEO and founder of Huawei is a fairplayer and doesn’t consider that Apple should face any retaliation from Beijing even as tensions with the United States escalate.
“That will not happen first of all, and second of all if that happens, I’ll be the first to protest. Apple is the world’s leading company. If there was no Apple, there would be no mobile internet. Apple is my teacher, it’s advancing in front of us, as a student why should I oppose my teacher?”Ren, told reporters
Huawei is the first victim of the US-China trade war
The subject was debated as Ren’s company is dealing with a tough situation because of the US-China trade war.
The US Department of Commerce placed Huawei on a trade blacklist earlier this month, effectively barring it from conducting business with American companies.
The ban forced suppliers like Google and ARM Holdings to cut off ties with the Chinese company. Top carriers in the UK and Japan are also delaying the launch of Huawei smartphones.
The US restrictions threaten Huawei’s position as the world’s largest telecommunications equipment maker and No. 2 smartphone brand.
Washington’s ban on the Chinese company “could stir up the smartphone industry by pausing Huawei’s positive momentum,” analysts at Fitch Ratings wrote in a note on Sunday.
ANother consequence could be that Samsung becomes the industry leader as consumers are going to looks elsewhere for alternatives to the cheap yet good Huawei smartphones.
Huawei and Apple perform differently on the chinese market
Huawei and Apple have had vastly different fortunes in Huawei’s home market of China.
Huawei shipped nearly 30 million phones in China in the quarter ended March, up 41% compared to the same period last year, according to research firm Canalys.
In the meantime, Apple saw its iPhone sales in China drop 30% in the same period. The country remains a key market for Apple, given that greater China, which includes Taiwan and Hong Kong, accounted for nearly 18% of net sales in the quarter ended March.
Apple CEO, Tim Cook, has stated last month, during an earnings call, that a trade dialogue between Beijing and Washington should be taken under consideration in order to improve iPhone sales in China, where customers seem to have a very positive response to the pricing actions we’ve taken in that market.
Unfortunately, since then, trade talks between Washington and Beijing broke down, and both sides ratcheted up tensions by slapping more penalties on billions of dollars worth of American and Chinese products.
The renewed trade dispute could hurt Apple, according to Fitch Ratings analysts.
“Apple could be another victim of the US-China trade war and its market-share loss may accelerate in the Chinese market,” they said.
US President Donald Trump last week called Huawei “very dangerous,” but then said he could see the company being included in a broader trade deal with China.
Ren told reporters that using his company as a bargaining chip is “a big joke.”‘
“How are we related to China-US trade?” he said.