According to the blacklist of Trump, Google cut off supplying the products to Huawei recently. This step is going to cost a loss of $425 million for the US in its annual revenue. An equity research firm named Nomura Instinet has figured out this loss and announced it publicly. From now onwards Google won’t be providing a license to the Android smartphone software of Huawei.
Google Can’t Do Anything About These Losses as Trump Administration Black Listed Huawei
Google doesn’t get to say anything in this matter as it was the Trump administration that has placed Huawei in blacklist recently. Almost all the US companies won’t be doing any business with this Chinese smartphone maker.
The Huawei devices that the company will launch from now onwards won’t get access to use Google Android. The old phones won’t get any updates or security patches from Google form now onwards.
According to an estimate of Instinet, Huawei has 500 million smartphone users across the world. 52% of them are in China where Google Play isn’t available. The other markets that have a huge impact on this decision are Asia (excluding China) and Europe.
Google has generated a whopping amount of $7 billion from Play Store sales in 2018 and $388 million of it comes from Huawei phones. The most important generator of these sales is Europe.
The report has also stated that this loss effect won’t last long for Google as there will be so many people who will switch from Huawei to other phones after learning about the absence of Google. Although Huawei has announced about their own operating system, users are not so sure about it.