US Feds Give Huawei and ZTE the Boot

[Lucian Armasu]

U.S. federal agencies will soon be banned from using devices or components from Huawei, ZTE, and other Chinese telecommunications hardware companies.

US Feds Give Huawei and ZTE the Boot : Read more

 

[Deleted member 2449095]

That's good for US companies like Qualcomm, but is there enough supply to meet the demand? Can the US companies manufacture everything in-house?

 

[Karadjgne]

Why in-house? There's always Mexico.

 

[techy1966]

The only problem I have with the US thinking they are the all mighty of everything is that it affects people in other countries as well such as Canada. I do not want to have to pay more for my stuff just because the USA is having a hissing fit with China. I was thinking Mr Trump would be good for the USA because he had some fairly ok ideas. The problem I see now is he thinks running a country is like running a large corporate company. This is not the case and if he makes bad calls it not only affects millions of people in his own country but it also affects millions of people in countries like Canada he is almost as bad as our own prime minister which is actually a real douche bag and at least 80% of us can not wait to oust his butt in 2019.

 

[JamesSneed]

The only problem I have with the US thinking they are the all mighty of everything is that it affects people in other countries as well such as Canada. I do not want to have to pay more for my stuff just because the USA is having a hissing fit with China. I was thinking Mr Trump would be good for the USA because he had some fairly ok ideas. The problem I see now is he thinks running a country is like running a large corporate company. This is not the case and if he makes bad calls it not only affects millions of people in his own country but it also affects millions of people in countries like Canada he is almost as bad as our own prime minister which is actually a real douche bag and at least 80% of us can not wait to oust his butt in 2019.

You lost me at "I was thinking Mr Trump would be good for the USA because he had some fairly ok ideas." Trust me your prime minister is a lovely guy in comparison.

 

[dudmont]

The only problem I have with the US thinking they are the all mighty of everything is that it affects people in other countries as well such as Canada. I do not want to have to pay more for my stuff just because the USA is having a hissing fit with China. I was thinking Mr Trump would be good for the USA because he had some fairly ok ideas. The problem I see now is he thinks running a country is like running a large corporate company. This is not the case and if he makes bad calls it not only affects millions of people in his own country but it also affects millions of people in countries like Canada he is almost as bad as our own prime minister which is actually a real douche bag and at least 80% of us can not wait to oust his butt in 2019.

The market will sort this out just fine. I very much doubt what's south of your border will have anything more than a marginal impact on the prices you pay for your next phone. Further, I would bet money that sometime in the near future, auction sites will have some Chinese Telecom equipment up for auction.
While I think the my government is too big, has it's hands in too many pies, uses resources very poorly, and generally doesn't do a very good job at anything, I very much think this is a wise move. What did Lenin say about capitalism? "They'd sell us the rope we use to hang them"? I've come to think that doing business with China is very similar to Lenin's thoughts. How we deal with China needs to be rethought, and fast, and that's not just for the US. China's ambition's extend globally.

 

[mlee 2500]

That's good for US companies like Qualcomm, but is there enough supply to meet the demand? Can the US companies manufacture everything in-house?

I wouldn't be so sure about that...allot of those companies use Qualcomm's Snapdragon and modem chips (Qualcomm doesn't make actual devices themself), and this action may drive the federal agencies to platforms which use Samsung Xynos or Apples own in-house processors and possibly Intel modems. Not to mention drive those Chinese device makers to use mediatek or other chinese silicon in their own domestic market (but, frankly, they were probably headed that direction anyway).

UPDATE: Yep, just as I suspected.... https://www.reuters.com/article/us-china-zte-qualcomm-analysis/u-s-strike-on-chinas-zte-another-blow-for-qualcomm-idUSKBN1HO0XT That's a dated link, but it shows how much of Qualcomm's business is dependent on Hauwei and others mentioned.

 

[dhayric]

FBI director Wray publicly stated that the greatest threat to America is not Russia but rather Chinese espionage. This is a good move. China has never been our friend and slid their way into the WTO by pretending to be an innocent third world country while masking their nefarious intentions.

 

[coolitic]

Article title is misleading

 

[olaf]

Yet it's funny the only country caught with his hand in the proverbial cookie jar is the US. Guess they'd know how to spy on others... Mean while ill just enjoy my cheap FTTH broadband in Europe, with a Huawei ONT.

 

[gggplaya]

That's good for US companies like Qualcomm, but is there enough supply to meet the demand? Can the US companies manufacture everything in-house?

I wouldn't be so sure about that...allot of those companies use Qualcomm's Snapdragon and modem chips (Qualcomm doesn't make actual devices themself), and this action may drive the federal agencies to platforms which use Samsung Xynos or Apples own in-house processors and possibly Intel modems. Not to mention drive those Chinese device makers to use mediatek or other chinese silicon in their own domestic market (but, frankly, they were probably headed that direction anyway).

UPDATE: Yep, just as I suspected.... https://www.reuters.com/article/us-china-zte-qualcomm-analysis/u-s-strike-on-chinas-zte-another-blow-for-qualcomm-idUSKBN1HO0XT That's a dated link, but it shows how much of Qualcomm's business is dependent on Hauwei and others mentioned.

No No No, that link is a hypothetical, a wrong one at that since ZTE mostly sells cheap sub $100 and sub $200 phones. So for them to quote an average chipset price from qualcomm of $25 is a bit off since the snapdragon 400 series fetches more like $8-$15. But I digress because after this hypothetical article, we did resume allowing sales of ZTE phones in the U.S. with caveats. With the current bill in this article, the ban is only limited to the U.S. government, which I doubt uses very many ZTE and Huwawei phones to begin with. Heck, even my company gives us older name brand phones from Apple and Samsung, like currently the Iphone 6s and Galaxy S7. ZTE mostly caters to the cheap pre-paid celluar market, so a total U.S. ban would decimate them for sure, but I don't think a government ban will. A government ban shouldn't affect your prices in CANADA at all.

 

[BigD1]

ZTE was selling to Iran and other countries that have sanctions. Market share LoL.

You can read, but comprehend what you read before opening pie hole.

 

[mlee 2500]

That's good for US companies like Qualcomm, but is there enough supply to meet the demand? Can the US companies manufacture everything in-house?

I wouldn't be so sure about that...allot of those companies use Qualcomm's Snapdragon and modem chips (Qualcomm doesn't make actual devices themself), and this action may drive the federal agencies to platforms which use Samsung Xynos or Apples own in-house processors and possibly Intel modems. Not to mention drive those Chinese device makers to use mediatek or other chinese silicon in their own domestic market (but, frankly, they were probably headed that direction anyway).

UPDATE: Yep, just as I suspected.... https://www.reuters.com/article/us-china-zte-qualcomm-analysis/u-s-strike-on-chinas-zte-another-blow-for-qualcomm-idUSKBN1HO0XT That's a dated link, but it shows how much of Qualcomm's business is dependent on Hauwei and others mentioned.

No No No, that link is a hypothetical, a wrong one at that since ZTE mostly sells cheap sub $100 and sub $200 phones. So for them to quote an average chipset price from qualcomm of $25 is a bit off since the snapdragon 400 series fetches more like $8-$15. But I digress because after this hypothetical article, we did resume allowing sales of ZTE phones in the U.S. with caveats. With the current bill in this article, the ban is only limited to the U.S. government, which I doubt uses very many ZTE and Huwawei phones to begin with. Heck, even my company gives us older name brand phones from Apple and Samsung, like currently the Iphone 6s and Galaxy S7. ZTE mostly caters to the cheap pre-paid celluar market, so a total U.S. ban would decimate them for sure, but I don't think a government ban will. A government ban shouldn't affect your prices in CANADA at all.

You missed the point. You're probably right about Government purchases of ZTE & Huwaei being small, and amounting to statistical noise in regards to Qualcomm revenue, but the point I was countering was the comment that this policy action was "Good for Qualcomm". It is not, and using your own example, Qualcomm will make only licensing money if the government moves to Apple phones (especially with Intel modems), or to non-snapdragon varieties of Samsung handsets.

In either case, the even greater risk is Chinese retaliatory action against Qualcomm's interests because of this policy. They already made Qualcomm's acquisition of NXP a casualty of politics (that's a fact regardless of how you may feel about that acquisition), and it's naive to believe that won't happen again under the current tariff climate. So, YES, this action by the government against Chinese handset makers is not "Good new" for Qualcomm.