The siege on Huawei may be easing off a bit – at least as far as its mobile division is concerned. The Financial Times reports that companies will be able to supply Huawei with components for non-5G uses.
More specifically components that won’t be used in the company’s 5G networking equipment. “It has been indicated to us that chips for mobile devices are not a problem,” says an executive from an Asian semiconductor company.
Samsung Display already has a license and Mr. Lee, an analyst at Jefferies, writes that Sony and OmniVision have been given the green light to supply Huawei with image sensors. Sony’s imaging department warned of decreased sales, in part because it was forced to stop shipments to Huawei.
Mr. Lee believes that Qualcomm and MediaTek could also receive licenses, which would solve Huawei’s chipset shortage. The company was previously barred from buying chips from MediaTek (which is headquartered in Taiwan) as those were produced using technology developed in the US.
There’s no word on whether TSMC will be allowed to resume shipments, which would enable Huawei to continue using its in-house Kirin chipsets. However, industry experts express doubts that even Qualcomm and MediaTek will receive licenses and point to the current administration’s “erratic policy decisions”.
Similarly, it’s not clear if mobile software and online services would be deemed okay – this might have massive implications for Huawei and Honor devices regaining access to Google Mobile Services.
Huawei’s mobile business accounts for more half of its revenue and it may resume operations if the chip supply chain is restored. However, the network equipment division will have to rely on the stocks it amassed before the ban as the US still considers it a threat to national security.
If there were any doubts left about whether the market would be "risk-on" or "risk-off" going into the election, Friday's selloff pretty much iced it. The toggle has switched to the off position.The late-week meltdown ignited after earnings from four of the five FAANGs that were mostly positive, but perhaps lacking in the guidance department (see more below). Combine that with the resurgence of COVID-19, the Senate adjourning with no more progress on a stimulus package, and the culmination of a long and contentious election season, and it's no wonder investors seem ready for a break. Even before FAANG earnings officially put things on ice, many investors showed signs of risk aversion ahead of the election. That made itself pretty clear with selloffs on Monday and Wednesday. Major indices suffered their worst week since March, and now people are openly making comparisons between this pre-election skid and the one we saw heading into the 2016 election.As noted this morning, keep an eye on futures Sunday night into Monday, and especially on Tuesday night as returns come in. Election night 2016 was a wild one for the futures market, featuring a steep plunge when it initially looked like results might be contested, followed by a meteoric rally when it became clear there'd be a victor without much fuss or muss.A wild ride could play out this time if things look testy by late Tuesday night. Or, if it looks relatively smooth, stocks could get a lift. It's arguably not so much who wins, but whether there's a chance of a long, drawn-out chaotic fight for a winner.Late Rally Back; A New Policy From The Fed A fierce recovery effort at the very end of Friday's session might put Monday's open into more solid territory. A late-breaking news item from the Fed about 40 minutes before the close also potentially contributed to the late rally. The Fed said it's reducing minimum loan sizes for smaller businesses that want to use the Fed's lending program. It's also easing restrictions on debt for companies already using the program. The Fed called these moves "two important ways to better target support to smaller businesses that employ millions of workers and are facing continued revenue shortfalls due to the pandemic."Basically, the Fed is trying to inject more money into the economy--something Congress and the White House haven't done with a stimulus since spring--which would possibly drive up economic growth expectations. The idea could be that this might help small businesses bridge the gap between now and any fiscal stimulus.Strong Data Raise Hopes For New Week There are other signs things might improve once the election excitement fades. Economic data have been solid lately. Gross domestic product (GDP) for Q3 came in above estimates yesterday, and initial jobless claims have finally started to ease a bit. New home sales for September were a bit subdued, but that's the only data all week that looked below average.The problem is that the good news is hitting a wall of worry centered on the election, COVID-19, and lack of a stimulus. Until we get those behind us (and it could be a while), risk premium in the market might continue unravelling as we saw this week. Technically, a lot of damage got done on the charts this week. The Dow Jones Industrial Average ($DJI) retested its 200-day moving average (before settling above it--see chart below) and the SPX took out its 50-day and 100-day moving averages. There appears to be potential technical support near the SPX 200-day moving average at around 3130, but that's still a long way down, so perhaps look for bulls to defend the psychological 3200 handle if things fall further.But if you're following corrections, the Nasdaq (COMP) has fallen 10% from its all-time high. The SPX is down 8.7% from its peak, so it's close but not all the way into correction territory.CHART OF THE AFTERNOON: MUSCLE MEMORY? The Dow Jones Industrial Average ($DJI-candlestick) retested its 200-day moving average (blue line) and closed above it. This is a level the index visited back in June and August (yellow circles), so it could be a pivotal level to watch, going forward. Data source: S&P Dow Jones Indices. Chart source: The thinkorswim® platform from TD Ameritrade. For illustrative purposes only. Past performance does not guarantee future results. Roadmap Left At Home As Guidance Lacking One thing besides the virus and election that some thought could potentially "catalyze"(is that a word?) Wall Street from its doldrums is earnings season, which is about half over. As usual, media headlines have zeroed in on the number of companies "beating" Wall Street's expectations. That stands at about 85% so far, but might not be the best way to judge. That's because analyst projections were so conservative this quarter that beating them is like your kid receiving a participation trophy. Investors are getting wise to this, too, as you can see this week from some companies like Microsoft Corporation (NASDAQ: MSFT) reporting a beat but getting punished because of weak guidance.Many companies, including Apple Inc. (NASDAQ: AAPL), are still holding out and declining to provide guidance. Some cite "uncertainty," though it's arguable that no quarter was ever "certain," even before COVID-19 came along. It's quite possible that this lack of guidance could be one factor keeping stocks from getting as much of a lift from earnings as normal.Among the major companies besides AAPL reporting recently but not sharing guidance are General Electric Company (NYSE: GE), Caterpillar Inc. (NYSE: CAT), 3M Co (NYSE: MMM), Xerox Holdings Corp (NYSE: XRX), Raytheon (RTN), and United Parcel Service, Inc. (NYSE: UPS). Knowing what happened last quarter but not getting forecasts for this quarter leaves investors hanging without a road map.One More Glance At FAANGs Earnings from the four reporting FAANGs looked good from a bottom and top-line standpoint, with no major misses. However, it appears that for all but one of the companies, Alphabet Inc (NASDAQ: GOOGL), the pre-earnings exuberance got carried away a bit.That's because it came down not to the top and bottom lines as much as to the stuff under the surface. With Facebook, Inc. (NASDAQ: FB), investors honed in on higher than expected spending levels in Q3. With AAPL, there was disappointment that iPhone sales missed Street expectations It's hard to find anything really unlikable about Amazon.com, Inc.'s (NASDAQ: AMZN) results, but that stock could be suffering a little profit-taking.The iPhone softness in AAPL's quarter as customers waited for the new 5G product might actually end up being a tailwind for AAPL going into its December and March quarters. That's because some of the people who'd previously waited to replace their phones might start doing that in the current quarter. So instead of pulling forward demand, as many Tech companies did early in the pandemic, AAPL kind of "pushed back" demand. Almost every S&P sector lost ground Friday as this disappointing week came to a close, but none got punished harder than Tech. It fell 2.1% on Friday and is down 2% over the last month. Investors might not be used to Tech being on the defensive this way, but considering the high value of that sector going into election season it's not all that surprising to see premiums coming out of there more than other sectors. One asset group that went against the grain Friday was the bond market. Pressure on Treasuries sent the 10-year yield to a new four-month high above 0.87%. Q3 GDP data might have given yields a lift, but it also could reflect the same sort of position-evening we saw in stocks today. People had been trending to the long side of the bond market this week, but didn't want to go into the weekend with that exposure.There was also a pretty muted reaction in the Cboe Volatility Index (VIX) today, as it didn't rise above the psychological 40 level. Maybe there's not as much concern around the election as people originally thought, or it could also reflect people exiting positions ahead of the weekend.Quick Look Ahead Next week features a heavy data calendar, with construction spending, October auto sales, factory orders, and--last but probably first in investors' hearts--the October payrolls report on Friday.From an earnings perspective, a lot of the fireworks are over, but there's no holiday next week. Reporting companies in coming days are expected to include PayPal Holdings Inc (NASDAQ: PYPL), Allstate Corp (NYSE: ALL), General Motors Company (NYSE: GM), Kohl's Corporation (NYSE: KSS), CVS Health Corp (NYSE: CVS), Marriott International Inc (NASDAQ: MAR), and Norwegian Cruise Line Holdings Ltd (NYSE: NCLH). Those last two could be important to watch for updates on travel demand as the U.S. and Europe fend with this new wave of virus cases.TD Ameritrade® commentary for educational purposes only. Member SIPC.Photo by Luca Bravo on UnsplashSee more from Benzinga * Click here for options trades from Benzinga * Apple Falls 4% As iPhone Sales Disappoint, But Most FAANG Results, Including Amazon's, Look Firm * FAANG Fans, On Your Marks: Apple, Amazon, Alphabet And Facebook Earnings Awaited After Close(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Huawei can now take orders from Sony for smartphone camera sensors, according to a report.
Sony supplies Huawei with the bulk of its flagship camera hardware.
The news comes after display and chipset suppliers were reportedly given the green light to resupply the Chinese firm.
Huawei‘s ailing smartphone business has been handed another lifeline. The US government has reportedly given Sony and Omnivision the green light to supply the firm with smartphone cameras, per Nikkei Asia.
According to sources familiar with the matter, the Chinese smartphone maker can now stock up on essential camera hardware for its devices. This comes after the US government halted critical component supplies to Huawei in mid-September in an escalation of the ongoing trade ban.
It’s another buoying win for Huawei in its battle to keep its smartphone business afloat. Earlier this week, Samsung Display was reportedly handed a license to supply the firm with displays. Although it also employs Chinese firm BOE for panels, it gives the firm another option.
Chip companies were also reportedly given permission to supply the firm’s smartphone division with some silicon, as long as it wasn’t used for the firm’s 5G telecoms business. It’s unclear which chips Huawei can order, or if this will herald the return of its Kirin chipsets. Huawei previously stated that the Kirin 9000 would be its last self-designed flagship SoC.
Beyond displays and silicon, Huawei’s relationship with Sony has been key to the success of its flagships. The Huawei P and Mate lines’ photographic prowess remains a selling point, largely thanks to the Japanese firm’s imaging hardware.
But does this good news arrive a little too late? Possibly. The damage has already been done to Huawei’s smartphone business. The firm is still yet to secure a number of key component suppliers, including memory maker SK Hynix. Huawei also lost its title of world’s biggest smartphone maker in Q3 2020 and looks set to drop behind Xiaomi in the forthcoming quarter.
Still, good news is good news for Huawei even if its future remains murky. The company will likely welcome any win it can muster right now.
Prior to writing and translating for Notebookcheck, I worked for various companies including Apple and Neowin. I have a BA in International History and Politics from the University of Leeds, which I have since converted to a Law Degree. Happy to chat on Twitter or Notebookchat.
A woman wearing a wearing a facemask as a preventive measure against the COVID-19 coronavirus speaks on her smartphone outside a shopping mall past a Huawei shop (back) in Beijing on April 1, 2020. (Photo by NICOLAS ASFOURI / AFP) (Photo by NICOLAS ASFOURI/AFP via Getty Images)
Nicolas Asfouri | AFP | Getty Images
HANGZHOU, China — Shipments of Huawei phones plunged in the third quarter as U.S. sanctions continue to hurt the Chinese technology giant, while domestic rival Xiaomi managed to capitalize on it, new data shows.
In the three months to the end of September, Huawei shipped 51.7 million smartphones, down 23% year-on-year, according to a Canalys report published Thursday.
Another firm, Counterpoint Research, said on Thursday that Huawei shipped 50.9 million smartphones, down 24% versus the same period last year. The Chinese firm's market share dipped to 14% from 18% in the third quarter of 2019, according to Counterpoint.
Overall in the third quarter, worldwide smartphone shipments reached 348 million units, a 1% decline year-on-year, but a 22% rise from the second quarter, the Canalys report showed.
Samsung overtook Huawei. The South Korean giant's shipments totaled 80.2 million, growing 2% year-on-year, Canalys said.
The U.S. has waged a campaign against Huawei as part of the broader trade war with China. Huawei is seen as one of China's national champions and key to the country's ambitions in next-generation technologies like 5G, the next-generation mobile networks that offer super-fast data speeds.
This is not a big deal in China where Google services are effectively blocked anyway. But in international markets, which are critical to Huawei's growth plans, consumers are used to using Google apps. Huawei's latest flagship smartphones do not have licensed Google Android and that's hurting the company's device sales.
Declines in international markets are continuing for Huawei, but the company also saw a 15% fall in shipments in China in the third quarter, according to another report by IDC published Thursday.
Meanwhile, Chinese rival Xiaomi is picking up the slack.
"Xiaomi executed with aggression to seize shipments from Huawei," said Mo Jia, analyst at Canalys. "There was symmetry in Q3, as Xiaomi added 14.5 million units and Huawei lost 15.1 million. In Europe, a key battleground, Huawei's shipments fell 25%, while Xiaomi's grew 88%."
Xiaomi's smartphone shipments in the quarter ending in September totaled 47.1 million, a rise of 45% year-on-year, Canalys said. It became the third-biggest smartphone player by market share for the first time, overtaking Apple which came in fourth place, and shipped 43.2 million iPhones in the same quarter.
IDC's numbers differed slightly. The research firm's data showed Apple shipped 41.6 million iPhones in the third quarter of 2020, down 10.6% year-on-year. IDC said the drop was expected as the next-generation iPhone 12 series was delayed.
"Regardless, the iPhone 11 series did exceptionally well, contributing the majority of Apple's volume, followed by the SE device," IDC said. "Looking ahead, we expect Apple to grow in coming quarters with strong early demand for iPhone 12 paired with robust trade-in offers across major carriers, especially in the U.S."
While Huawei didn’t rank highly in Counterpoint’s Trust Rankings, things are about to change as Wang Chenglu, the President of Huawei’s consumer business software department, says that the company is preparing to release an EMUI 11 update for 37 models. This will push the upgrade rate over 90%.
Flagships in the Huawei P40 and Mate 30 series received a public beta of the new OS version on October 10. Today, ten more models are joining the beta program, including the Honor 30 and Huawei nova 7. You will find the list of phones getting the beta below along with a timeline at the bottom.
The goal is not only to have a high fraction of Huawei and Honor phones running the latest version of the software, Huawei is aiming for high volume too – the target is over 200 million active users.
EMUI 11 was announced on September 10 and while it’s still based on Android 10, it brought a number of visual updates and new features. Actually, it’s a mix of Android and HarmonyOS as some components and technology from were ported over from the in-house OS.
In fact, Chenglu hinted that this may be the last EMUI version before it’s replaced by Harmony (aka HongMeng OS). Some of the phones testing the EMUI beta may get to run Huawei’s OS next year, but the company hasn’t announced a road map for that yet.
The Mate 40 Pro is Huawei's latest superphone, which the company hopes will go up against the iPhone 12 Pro($999 at Amazon) and Samsung'sGalaxy S20 and Note series. Wrapped up in an attractive body, it's packed with the latest top tech and 5G. But while it's got solid specs on paper, it suffers from one major problem.
Due to the ongoing restrictions imposed by the US government, Huawei's phones can't use any Google services, including Gmail, Maps and Chrome and, most importantly of all, the Google Play store. While Huawei has its own app store (which I'll come to later) it's nowhere close to rivalling Google's and it makes this phone difficult to recommend over any of its rivals.
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The Huawei Mate 40 Pro will be on sale later this year for 1,199 Euros (converts to £1,082, $1,418, AU$1,996).
But the lack of apps aside, there are still things to like about the Mate 40 Pro. Let's begin with the positives.
Andrew Hoyle/CNET
Mate 40 Pro has a gorgeous design
I adore the pearlescent finish on the back of the phone. Look at it from one angle and it shows soft orange and light blue tones. Tilt it in the light and those colors shimmer and blend into deeper blue and purple hues. Move it around more and I'm sure you'll be able to identify even more colors that I can't even name.
The design is satisfying and simultaneously gives the phone a beautiful and classy aesthetic. The frosted glass feels extremely premium too, as does the metal edging and the overall solid build. There's no question that it feels like a top-end device when I'm holding it in my hand.
The 6.76-inch display is bright, pin-sharp with narrow bezels that stretch right to the edge. It curves attractively to meet the metal frame. Images look vibrant, small text is crystal clear and it's easy to read outdoors in sunlight.
Andrew Hoyle/CNET
Mate 40 Pro's 4 rear cameras are good overall
The four rear cameras are decent, but not outstanding. The main camera balances exposure well and delivers accurate, vibrant colors. The 5x optical zoom captures impressively detailed shots, and even at 10x zoom there's still a lot of clarity in the image. The super-wide camera is less impressive, producing shots often with more subdued contrast and sometimes a noticeable shift in white balance, likely due to an overenthusiastic HDR mode lifting the shadows.
Huawei Mate 40 Pro camera test, standard lens.
Andrew Hoyle/CNET
Huawei Mate 40 Pro camera test, wide lens.
Andrew Hoyle/CNET
Huawei Mate 40 Pro camera test, 5x zoom.
Andrew Hoyle/CNET
Huawei Mate 40 Pro camera test, standard lens.
Andrew Hoyle/CNET
Huawei Mate 40 Pro camera test, standard lens.
Andrew Hoyle/CNET
Huawei Mate 40 Pro camera test, wide lens.
Andrew Hoyle/CNET
Video has been a big focus for the Mate 40 Pro, but there's room for improvement. The stabilization is excellent, and it managed to capture smooth footage even when I was walking at a fast pace. The optical zoom comes in handy for shooting different compositions, although I found that the focus frequently drifted in and out when shooting at 5x zoom. Also, the HDR mode in video is as heavy-handed as it was in photos. Its processing brought up the shadows and turned down the highlights to such an extent that the resulting footage was a bit disappointing and suffered from odd stabilizing distortions. Specifically, I could see the software struggling to balance a bright sky that was moving around in the frame.
There's no question that it's a good camera overall, but I feel that a few software tweaks could go a long way to making it a great camera.
Mate 40 Pro processor, 5G and battery life
Inside the phone is Huawei's Kirin 9000 processor, which provides superfast 5G connectivity, and 8GB of RAM. Navigating around the phone's interface is swift and I didn't notice any lag while playing the demanding racing game Asphalt 9: Legends. The game also showed consistently high frame rates. However, on paper at least, its score of 7,827 on the 3D Mark Slingshot: Unlimited benchmark test sits below both the OnePlus 8T($749 at Amazon) (9,802) and the iPhone 12($799 at Apple) (10,988).
While I haven't ran the usual battery rundown tests on the phone, based on our anecdotal experiences so far, the phone seems capable of getting through a full day of mixed use, with plenty to spare into the next day. It supports fast charging too, so giving it a quick boost before heading out isn't a problem.
Andrew Hoyle/CNET
Mate 40 Pro's big software and app problem
While the phone runs Android software at its core, it doesn't use Google's services, which means it can't access the Google Play store. Apps like Gmail and YouTube are not available at all, although you can still access YouTube through the web browser.
To help combat this, Huawei launched its own app store and, to its credit, it's done a lot to close the gaps in recent months. Big names like Amazon, Snapchat, TikTok and Tinder are available while Facebook and WhatsApp can both be downloaded as apk files directly from their respective official websites. I couldn't find an official download for Instagram, but the apk is available from third-party services, as is the case for a variety of Android apps.
Andrew Hoyle/CNET
The issue of doing this, however, is that you have to trawl through websites that seem adamant on tricking you with adverts. Many I visited used the trick of a big "Download Now" button that's actually an ad, and buried the actual, much smaller "install apk" button further down. You have to be on your guard and it's not as pleasant an experience as browsing through a regular app store. Also, installing apk files from unknown sources is inherently risky. Because they don't come from official sources, you don't know if they're even up to date or if they're loaded with malware. I didn't mind trying this out with my review device, but I wouldn't be comfortable doing it on a phone that also contained my banking details, contact lists and work email accounts.
Huawei says it's working with developers to bring more apps to its store. For instance, it launched a system whereby if a certain app isn't available, you can log your interest and, assuming enough people do the same, Huawei will prioritize that app and bring it to the store. It's also launching its own maps service in the coming weeks. But the fact remains that its shelves are relatively bare right now and if you're into getting the latest games and services then this isn't the phone for you.
Huawei Mate 40, Mate 40 Pro Plus and accessories
Alongside the Mate 40 Pro that I've tested, Huawei also has the standard Mate 40, which has a slightly lower-spec camera setup, including 3x and 5x optical zoom lenses and a lower resolution ultra wide lens. The top-end Mate 40 Pro Plus meanwhile packs a 3x telephoto, a 10x telephoto and a huge 17x optical zoom lens which is the biggest optical zoom we've ever seen on a phone. What images look like at this zoom range remains to be seen. The ultra wide lens on the Mate 40 Pro Plus also promises less image distortion thanks to a 'free-form' lens.
There's also the Mate 40 RS, made with design firm Porsche Design. The technology remains basically the same as the Mate 40 Pro, but it's got a tweaked overall aesthetic and there's a Porsche Design version of Huawei's existing Watch GT2 as well. The company also
The Huawei FreeBuds Studio are the company's first over-ear wireless headphones that promise noise cancelling, high resolution audio and up to 24 hours of playtime from a full charge.
Huawei Mate 40 series pricing
Huawei Mate 40: 899 euros (converts to about £810, $1,060, AU$1,500)
The US has reportedly allowed chipmakers to sell components to Huawei.
Smartphone chip components can be sold to Huawei as long as they are not used for its 5G business.
Huawei might be in for some relief as far as its smartphone business is concerned. According to a Financial Times (FT) report, the US has started allowing chip companies to supply components to Huawei. The only caveat is that the components should not be used for the Chinese brand’s 5G business.
The US Department of Commerce “has been telling companies in recent conversations that while licenses to supply Huawei are handled with a view to denial, this can be overcome if you can demonstrate that your technology does not support 5G,” an unnamed chipmaker involved in discussions with US authorities told FT. The chipmaker was reportedly referring to Huawei’s 5G infrastructure business.
The move could come as a huge boon for Huawei which has been reeling under the US trade ban since last year. The US government’s most recent restrictions banned Huawei from sourcing any hardware made with US technologies. Because of these sanctions, Huawei lost TSMC as a chip manufacturer, spelling the end for its Kirin processors.
Between this latest ease-up and the move allowing Samsung Display to supply OLED panels to Huawei, it looks like the cloud of US restrictions is slowly lifting from the Chinese phone maker.
Even though the US will reportedly continue to restrict the company’s access to 5G equipment, the resumption of other chip components might mean that the Kirin story is not over after all.
FT reports that two Asian semiconductor companies have said they are optimistic about getting licenses to do business with Huawei. “It has been indicated to us that chips for mobile devices are not a problem,” said one of them.
There has been no official word on these relief measures from the US Department of Commerce, so it’s a wait and watch game for now.
The US is allowing a growing number of chip companies to supply Huawei with components as long as these are not used for its 5G business, people briefed by Washington said, in a potential lifeline for the Chinese group.
Analysts believe this could mean that tough US sanctions this year against China’s leading technology group could be less threatening to its overall business than previously thought. While the sanctions would still pose a grave challenge to Huawei’s 5G business, the company’s important smartphone arm might have a chance to recover.
The US Department of Commerce “has been telling companies in recent conversations that while licences to supply Huawei are handled with a view to denial, this can be overcome if you can demonstrate that your technology does not support 5G”, said a semiconductor executive involved in dialogue with the department, referring to the cutting-edge telecoms infrastructure.
Executives at two Asian semiconductor companies said they were optimistic that their applications for licences to resume shipments to Huawei would be approved. “It has been indicated to us that chips for mobile devices are not a problem,” said one of them.
This is a strong indication the US intends to allow Huawei to stay in the handset business
Washington barred companies worldwide from manufacturing for or selling to the Chinese group components that used US technology, under rules imposed in May and then tightened in August. Given the central role of US technology in the global semiconductor industry, the sanctions threatened to choke off Huawei’s access to chips.
But recently Washington has appeared more willing to permit companies to supply Huawei with components for non-5G uses. The display unit of South Korea’s Samsung Electronics said on Tuesday that it had received a US licence for shipping organic light-emitting diodes, or OLED displays, for handsets to Huawei.
“We believe this is a strong indication the US intends to allow Huawei to stay in the handset business, since, as we have argued, it does not present an obvious national security threat to the US,” wrote Edison Lee, an analyst at Jefferies, in a research note.
Mr Lee said Japan’s Sony and Chinese-owned OmniVision, headquartered in California, had also been granted licences to supply Huawei with CMOS image sensors — chips used in smartphone cameras.
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OmniVision did not respond to a request for comment.
At an earnings briefing on Wednesday, Sony declined to comment on whether it had been granted a licence to resume selling its image sensors for use in Huawei smartphones.
Sony was forced to cut its full-year profit guidance for its image sensor business by 38 per cent after halting its sales to Huawei from September 15.
The US government, which has argued for more than a decade that Huawei’s telecoms infrastructure equipment could pose a security threat, originally put the Chinese company on a list of entities subject to export controls last year.
In the year that followed, more than 300 companies applied for licences to allow them to continue doing business with Huawei, of which about one-third were granted. US chip companies Intel and AMD were among those that received a licence. Intel has continued to supply Huawei with processors for servers in its cloud computing business.
After a second wave of sanctions was announced in May, Huawei started stockpiling the chips needed to power its telecoms networking gear, such as base stations. Its telecoms infrastructure unit, which builds and manages mobile networks for carriers from China Mobile to Deutsche Telekom, has enough inventory for about two years, according to industry executives.
But Huawei’s consumer business, which accounts for more than half of its revenue, was harder hit. The tougher US restrictions announced in August not only block contract chipmakers from manufacturing the latest smartphone processor designed by Huawei in-house, but also bar vendors such as Taiwan’s MediaTek from selling it off-the-shelf chipsets.
Jefferies’ Mr Lee said if Washington was willing to allow Huawei’s smartphone business to survive, both US chip company Qualcomm and MediaTek could receive licences later this year to resume sales of certain chips needed for smartphones to Huawei.
However, industry experts caution against too high expectations on the matter, pointing to what they say are the Trump administration’s erratic policy decisions.
Testing out internet speeds on an Oppo Reno 5G smartphone with EE's network.
Ryan Browne | CNBC
LONDON — Sweden's Ericsson on Wednesday announced it had been selected to supply BT with 5G radio equipment in London and other major cities in the U.K.
It comes after the British government decided to block Huawei from its fifth-generation mobile networks. The move — a reversal from a previous decision to allow "non-core" equipment from the Chinese technology giant — means U.K. carriers will have to strip out Huawei gear from their infrastructure entirely by 2027.
Ericsson is one of Huawei's fiercest rivals in the race to develop 5G network infrastructure. The rollout of 5G has been a key issue in a technology spat between the U.S. and China, with Washington pressuring its allies to remove Huawei from their 5G networks over espionage concerns.
Huawei has frequently denied its network kit could allow China to spy on sensitive communications, insisting it is independent from the government in Beijing.
Ericsson said it would provide connectivity for customers of BT's EE mobile unit in London, Edinburgh, Belfast and Cardiff, managing about 50% of its total 5G traffic. Earlier this year, the firm signed a contract with the U.K.'s biggest mobile operator to build out the sensitive "core" parts of its 5G infrastructure.
"Having already been selected to partner in 5G Core, we are pleased to strengthen the relationship further with this deal that will deliver high performance and secure 5G to their customers across the UK's major cities," Ericsson CEO Borje Ekholm said in a statement.
Ericsson's Finnish rival, Nokia, signed a separate 5G deal with BT last month, saying the agreement would make it BT's largest infrastructure partner. Industry sources told CNBC at the time that Nokia would account for 63% of U.K. telecoms group's entire network, powering 11,600 of its radio sites.
Carriers around the world started switching on their 5G networks last year, promising superfast data speeds and smoother gaming and streaming experiences. But the global rollout of 5G has so far been marred by gaps in coverage. It's expected to gather pace though with the recent launch of Apple's iPhone 12.
Italy has reportedly blocked its domestic operator Fastweb from contracting China’s Huawei to supply equipment to build its 5G core network.
Fastweb had reportedly planned to use Huawei as its sole 5G supplier. “The government has vetoed the operation, asking Fastweb to diversify its suppliers”, a source familiar with the matter told the media.
It is the first time Italy has blocked Huawei from making a deal to provide 5G equipment to sensitive core networks within the country. The decision comes as European countries take an increasingly hard line against the giant.
Last year, the United States government added Huawei to its trade blacklist, amid concerns that its 5G equipment enables the Chinese government to spy on other nations.
Bulgaria has joined the US-led international coalition against Huawei. The framework agreement was signed last Friday by Prime minister Boyko Borissov and US Secretary of State Mike Pompeo.
The “Clean Network” initiative aims to eliminate “long-term threats to data privacy, security and human rights posed to the free world from authoritarian malign actors, such as the Chinese Communist Party”, according the US Department of State.
Earlier this year, the United Kingdom told telecoms companies to remove Huawei 5G networking equipment they had already installed.
The Trump administration has signed a raft of bilateral declarations with countries in Central and Eastern Europe aimed at rolling back Chinese influence in cutting-edge 5G telecommunications infrastructure, notching an important eleventh-hour success for an administration that has sought to counter Beijing’s growing global influence.
In the past week, the State Department announced that it had clinched agreements with Slovakia, North Macedonia, Kosovo, and Bulgaria on high-speed wireless network technology. The memorandums make no explicit mention of other countries, but they stress that any new 5G systems should take into account whether the network suppliers are subject “to control by a foreign government,” taking indirect aim at Chinese telecoms giants like Huawei and ZTE that are building up 5G infrastructure all over the world, including in Europe.
During a visit to Washington, Slovak Foreign Minister Ivan Korcok said in an interview that the memorandum with the United States “is fully consistent with our own national effort to do everything that is needed to make sure that 5G will be secure.”
“Everybody’s aware of all the risks involved,” he said. “And we don’t want to see any backdoor players coming in unless we know and decide that on [the] national level.”
Slovakia’s position is emblematic of how many smaller countries in Central and Eastern Europe are braving new geopolitical headwinds amid competition among the United States, Europe, Russia, and China. Slovakia’s new government, propelled into office on a wave of protests and promises of anti-corruption reform, has actively sought to tighten relations with fellow European Union members—and with the United States and other NATO allies.
In August, U.S. Secretary of State Mike Pompeo visited Central Europe and warned against both Russian and Chinese influence in Europe, part of a monthslong diplomatic offensive to convince European countries to block Chinese companies from developing their telecommunications systems. That same month, the Trump administration unveiled what it called a “Clean Network” program to counter “long-term threats to data privacy, security and human rights posed to the free world from authoritarian malign actors, such as the Chinese Communist Party.”
This month, the United Stateslauncheda new U.S.-EU dialogue on China aimed at coordinating policies across the Atlantic to address China’s emerging role as a global superpower.
U.S. officials and top European intelligence officials warned that allowing Chinese companies to develop Europe’s 5G systems could be a Trojan horse for high-tech snooping from Chinese spy services and could grant Beijing undue influence over the trans-Atlantic community’s critical infrastructure. This month, Sweden became the latest European country to ban Huawei and ZTE from its 5G infrastructure. The United Kingdom in July announced plans to completely purge Chinese equipment from its 5G networks in the next seven years. Other major European powers such as Germany, France, and Italy have stopped short of banning Huawei from its networks outright but have pushed its own industries to move away from cooperating with the Chinese company and placed tighter restrictions on its 5G networks that could serve as insurmountable barriers to Huawei.
Both the Chinese government and Huawei representatives have repeatedly dismissed the claims that Chinese-built infrastructure is risky. “Huawei is a private commercial company 100% owned by its employees. There are no factual grounds to support any allegations of Huawei posing any security threat. We find the exclusion of Huawei simply based on groundless presumption, unfair and unacceptable,” Huawei said in response to Sweden’s decision.
In Central Europe, the new Slovakian government is pursuing an abrupt about-face. The previous governmentdownplayedHuawei as a security threat and stood out as the only country in Central and Eastern Europenot to expelRussian diplomats from the country after the 2018 poisoning of a former Russian intelligence officer in the United Kingdom—even as seniorHungarianandCzechofficials faced criticism for maintaining warm relations with Moscow.
But under center-right Prime Minister Igor Matovic, who took office in March, the Slovak governmentexpelledRussian officials for abusing Slovak visas, reportedly tied to the murder of a Georgian man in Berlin in 2019. When it comes to China, Slovak President Zuzana Caputova went as far as torefuseto speak at a think tank conference due to the conference’s partnership with Huawei. (The think tank later withdrew from its sponsorship pact with Huawei.)
Korcok, the foreign minister, was careful to point out that the new agreement with the United States does not explicitly ban specific companies from its networks, but heindicated his country was waking up to the geopolitical implications of foreign investment from rivals like Russia and China. For years, China has tried to make investment in Central and Eastern European countries—the so-called 17-plus-1 group—a key plank in its ambitious Belt and Road Initiative, with an eye toward gaining a stronger foothold in European markets and reaping geopolitical rewards. (Greece has run interference in Brussels for Beijing on issues like human rights, which some analystsattributeto substantial Chinese investments in Greek ports.)
“China is a country that we recognize as a partner,” Korcok said. “But at the same time, China is a competitor, and … it’s a systemic rival. So I’m looking at partners like China through very realistic optics.”
Huawei is rumored to update its nova line soon and we’ve seen evidence of the nova 8 series in certifications and leaks. We’re expecting no less than three models with the nova 8, nova 8 SE, and nova 8 Pro. Now, we have a new listing on China’s 3C agency revealing the charging capabilities of the vanilla (JSC-AN00) and Pro (TN00) models. Both models will feature 66W charging thanks to their HW-110600C00 charger which is the same brick that comes on the Mate40 flagships.
3C listing
The nova 8 is expected to come with a 90Hz OLED display while the Pro will get a 120Hz OLED panel. They will be supplied by either Visionox or Tianma Microelectronics. The nova 8SE will sport a 6.53-inch OLED display, MediaTek Dimensity 720 chipset and 48MP primary camera. Pricing is expected to start at CNY 3,299 ($485) for the nova 8 while the Nova 8 Pro will start at CNY 3,999 ($585). We’re expecting more details to surface soon.
