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On June 16, 2019, the US Department of Commerce added Huawei to a list of companies considered a threat to US national security, meaning it would need permission to acquire US technology. Soon chipmakers like Intel and Broadcom reportedly stopped selling to Huawei, and Google pulled the company's licenses for key mobile applications like Gmail and the Google Play app store.
Shall impact adversely in Indian market for Huawei and its child brand Honor
Major two areas where this ban can affect, are:
1) India as 5G trial-ground and market:
India’s Department of Telecommunications is yet to make a formal call on allowing Chinese vendors – Huawei and ZTE – to be involved in deployment of fifth-generation (5G) technology in India, the government is likely to allow Huawei to participate in the upcoming 5G field trials, reports Economic Times (https://telecom.economictimes.indiatimes.com/news/us-ban-unlikely-to-impact-huaweis-india-telecom-business-india-may-allow-it-for-5g-field-trials/69410929)
The 5G trials are vendor neutral and there’s no question of blocking or keeping any vendor away, the daily added, quoting an Indian government official.
2) Mobile handset market:
The US ban is expected to slow down its business in India. As for handsets, Huawei has clarified that it will continue to sell Android-based smartphones from its existing stocks, but industry observers feel future sales may take a hit.
In India Huawei sells handsets under the brand names Huawei and Honor, with the former catering to high-end clientele and the latter to budget consumers.
In fact, after seeing the success of other Chinese brands like Xaomi and OnePlus in India. Huawei has invested millions of dollar in its subsidiary mobile brand Honor for India market and now all that seems to end up in garbage bins.