The US ban on ZTE is seeing some unwanted tension in the smartphone industry. The Chinese company isn’t taking the seven-year ban seriously.
US Ban on ZTE
In a huge setback for the Chinese company, the US ban on ZTE has come forward to take the world by storm. According to the ban, the US has disallowed any American firm to sell any kind of software or hardware to ZTE. The ban has been imposed for a period of seven years. This decision hasn’t come in good taste, obviously, and tensions are flying around.
ZTE had launched the ZTE Tempo Go on the US market at the end of the last month. The ZTE Tempo Go was the first Android Go phone launch from the company in the US.
Strategy Analytics analyst Woody Oh said
If the issue cannot be solved smoothly and immediately, we think that ZTE will face tremendous disaster and would be forced to scale back on its smartphone business, not only in the U.S., but also in other markets.
Reuters was the first one to report this news to the world. As far as the US ban on ZTE is concerned, there started to build a situation where something like this was about to take place. The two countries exchanged threats and billions of dollars in tariff was at stake.
ZTE was in understanding with the U.S. Commerce Department. Punishing employees if caught doing illegal things according to the understanding was one of the clauses. And the US had caught them shipping good to Iran, as per the report. China didn’t waste time and was quick enough to take action for their companies’ sake.
Catastrophic Situation for ZTE?
The US ban on ZTE won’t go well with ZTE as they get more or almost 1/4 components and parts that the Chinese firm uses in its products. The ban may be inclusive of the Play Store, even as Android OS platform will continue to stay free. However, as far as the Indian market is concerned, ZTE is looking to invest in India for the upcoming 5G.
According to Richard Windsor, who is an independent analyst at Radio Free Mobile
I think that there is a risk that ZTE loses all of its non-Chinese Android business. In almost every region outside of China, it is almost impossible to sell an Android handset that does not have Google Play installed.