News Report: Huawei and US Chipmakers (Nearly) Admit Defeat

Co BIY

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Jun 18, 2015
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I don't see support for the headline's "defeat" anywhere in the article. Yes, Huawei is finally admitting the obvious, that a tough US ban on it's global presence is going to hurt bad. But admitting a 30 billion revenue loss but retaining 100 billion both sounds survivable and is not alluded to as a defeat. There was no admission of spying or IP theft, no apology or promise to not continue these practices in the future.

As for US chipmakers, I saw no change from previous information that they will lose a customer and associated revenue. Some a little on the margin and some a core customer that is very important. Where is the defeat ? I'm not sure if the US companies have a "side" ? It is clear that they want to sell to Huawei but they have been very measured in their comments. Their lobbying for easing the terms that hurt them the worst is not defeat. In fact lobbying for better terms for their individual financial positions may be legally required even if they backed a tough position on Chinese IP theft, mercantilism and espionage (which I don't believe any of them do).

When a Huawei phone or laptop is not made for the global market someone else will replace most of them in the market place and all those units need chips too. But realistically that business is very unsettled and uncertain and cannot be reported to shareholders. Losing the legal ability to sell to a known customer is a clear liability and must be reported.
 
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