Samsung to benefit from Google's departure from Huawei
By Jun Ji-hye
Samsung Electronics will likely benefit from Google's latest decision to sever ties with Chinese smartphone maker Huawei, industry analysts said Monday.
Samsung has remained the world's No. 1 smartphone maker, but has been closely chased by Huawei in the global market.
Google has reportedly suspended business operations with Huawei except those publicly available through open source licensing after the Donald Trump administration blacklisted Huawei amid the ongoing trade war between the United States and China.
The suspension will have a dramatic impact on Huawei's smartphone sales across the globe as the tech giant "will immediately lose access to updates to Google's Android operating system," Reuters reported.
It reported the Chinese firm's new devices running on Android are also set to lose access to some popular Google apps including Gmail and YouTube.
A Google spokesman said the firm was “complying with the order and reviewing the implications.”
Google's Android operating system has been widely used by smartphone makers worldwide except for Apple.
Huawei has been developing its own mobile operating system in preparation for an emergency, but it is unlikely the system will have competitive power outside China even if the development is successfully completed.
As the suspension is highly likely to cause significant inconvenience to users of Huawei devices, Samsung is expected to seize an opportunity to solidify its No. 1 position and extend its lead.
“If U.S. sanctions against Huawei continue, Samsung Electronics will emerge as a beneficiary in the smartphone business as well as in the telecommunication equipment and system semiconductor businesses,” said Hana Financial Investment analyst Kim Gyung-min.
According to industry tracker Strategy Analytics, Samsung Electronics had a 21.7 percent market share in the global smartphone market in the first half of the year, while Huawei had 17.9 percent. The gap between the two companies was just 3.8 percentage points.
The Chinese firm appeared to have quickly chased the Korean tech giant over the past year, considering Samsung's share in the first quarter of last year stood at 22.6 percent, while that of Huawei was tallied at 11.4 percent, a gap of 11.2 percentage points.
Samsung has also been in competition with Huawei in the telecommunication equipment market as countries around the world have commercialized or are preparing to commercialize fifth-generation (5G) networks.
Huawei took first place in the global telecommunications equipment market in 2017 with a 28 percent market share on the back of active support from the Chinese government and its price competitiveness.
But the Chinese firm's equipment business is also facing a crisis, with the United States stating that Huawei products provide a backdoor for Chinese espionage activities.