Huawei risks losing hundreds of millions of euros following Google's decision to suspend its Android license, following the limitations imposed in recent days by the United States government on numerous Chinese technology companies. The decision will have many consequences for Huawei and for those who use its smartphones, because it effectively excludes the Chinese manufacturer from various services offered by Google, including updates to the operating system. Huawei will be able to continue to use the free (open source) version of Android, which however has fewer predefined features than those offered by Google and which requires more development work on the part of those who use it.
Google's decision was anticipated by Reuters citing sources inside the company, and was later confirmed by the same company. Google suspended the license following the US Department of Commerce's decision to include Huawei on its “Entity List,” the list of companies that cannot purchase technology products from US companies without prior government approval.
Google said it is working to assess the consequences of such a decision, which are manifold and affect not only Huawei as a company, but also the millions of customers who use its smartphones. For now, Google Play and the Google Play Protect security system, to avoid installing applications with malware, will continue to work on devices already sold, while many doubts remain about how these can be updated in the future.
The suspension of the license means that Huawei can only use the open source version of Android, made available through the Android Open Source Project (AOSP). It is a basic version of the operating system, on which Google then builds the version that is usually installed on the smartphones of the main manufacturers, with agreements and licenses for use. AOSP includes several features, but not all those that Google offers as additional services through its applications and that users are now used to being on an Android smartphone.
In addition to the lack of some Google services, Huawei may have problems disseminating security updates for its devices, having to wait for them to be available on AOSP and then having to autonomously arrange for them to be disseminated. Huawei smartphones also have numerous integrations with the commercial version of Android, and compatibility problems may arise in the future. At the moment, both Google and Huawei are doing their evaluations, so it is not possible to say which smartphone models will be most affected by these problems.
Accused by Donald Trump's government of spying on behalf of the Chinese government, for which no evidence has yet been provided, Huawei has been substantially banned in the United States in recent months. The Chinese company, which in addition to smartphones produces telecommunication systems (cell towers, submarine cables for the Internet), cannot do business in the US market, while it is quite active in the rest of the world. In addition to partnering with numerous mobile operators to build 5G, Huawei sells millions of smartphones in Europe and is the second largest smartphone manufacturer after Samsung worldwide.
According to sources consulted by Bloomberg, in addition to Google, other US technology companies are also reviewing their contracts with Huawei to comply with the decisions of the US government. Intel, Qualcomm and Broadcomm – among the largest microchip manufacturers in the world – are suspending supplies of their components, which Huawei uses in its devices. In view of this eventuality, the Chinese company had made stocks, which should be sufficient for the production of smartphones and computers for the next three months.
Huawei has released a short statement:
Huawei has made a substantial contribution to the development and growth of Android around the world. As one of the key global partners for Android, we have worked closely with its platform to develop an ecosystem that benefits both users and the industry. Huawei will continue to provide security updates and services to all existing Huawei and Honor-branded smartphones and tablets, both for those already sold and for those still in stock. We will continue to build a safe and sustainable ecosystem to deliver the best experience for our users on a global scale.
In the short term for the millions of users who use Huawei smartphones there should be no particular problems, but the possibility of receiving security updates and those to upgrade to the next Android versions remain in question.
