What Google’s Ban Means to Huawei

Google blocks business deals with Huawei

Alphabet’s (GOOGL) Google suspended its business dealings with Chinese (MCHI) (FXI) tech giant Huawei after the Trump administration added Huawei to a trade blacklist on Thursday, escalating the trade war between the world’s two most powerful economies. The ban restricts supplying any hardware, software, or technical support to the Chinese company. However, Huawei may be allowed to use an open source version of Google’s operating system, and Google has assured that its services would be available on existing Huawei smartphone devices.

What Google’s Ban Means to Huawei

Huawei’s dependency on Android operating systems

With Google’s ban on Huawei, the Chinese company’s upcoming smartphones will not have Android operating systems or other services such as Maps, Google Play, Gmail, or YouTube, making it difficult for Huawei to sell smartphones outside China. The move is expected to dent Huawei’s market share, as most of the company’s smartphone shipments are outside mainland China. Google, set to lose its key client, saw its stock fall 2.06% yesterday.

Notably, Google’s Android operating system is the most widely globally. According to StatCounter, Android OS held more than 75% of the market in April, followed by Apple’s iOS, which held ~23% of the market.