Apple Analyst Predicts Nightmare Decline for Huawei Without Own Operating System

[The AchieVer]

Apple Analyst Predicts Nightmare Decline for Huawei Without Own Operating System 

 

Huawei is currently developing its very own operating system after being banned from using products developed by US companies, including here Android and Windows, and a top Apple analyst says the Chinese tech giant should finalize this project as soon as possible.

 

Ming-Chi Kuo of TF International Securities, who has until now offered reliable scoops on the mobile market, says Huawei’s shipments this year could drop no less than 180 million units from 270 million units if the company doesn’t launch its operating system in 2019.

Furthermore, there’s the risk of this operating system not being able to replace Android, in which case the drop is very likely as well.

If Huawei does manage to make the OS a worthy replacement to Android and bring it to the market by July, shipments could drop only to 240 million or 250 million units.

On the other hand, both Samsung and Apple are likely to win big following Huawei’s struggle. Kuo says Samsung sales could increase from 290 million units this year to 300 million or 320 million units. Apple could also return to approximately 200 million units.Open-source operating systemKuo, however, recommends Huawei to plan in the long term, and the operating system that it develops shouldn’t be just a temporary alternative to Android. This means the company should collaborate with the Chinese government and encourage other local phone manufacturers to install the same operating system on their devices.

“Let the own OS be an open source OS. The Chinese government could offer incentives to encourage major Chinese companies (e.g., key internet service providers and other Android brands) to work together to build ecosystems,” Kuo notes.

Eventually, the analyst warns that Huawei should keep an eye on brand trust, as the US scandal can significantly affect sales.

“We think the most important impact would be losing brand trust if Huawei couldn’t offer stable shipments due to the U.S. export ban. The motivations of customers (consumers and operators) to buy Huawei products might be lower due to unstable shipments. Also, component suppliers may have a concern about offering differentiation services (e.g., customized components). It’s not easy to save brand trust if it’s gone. Even if the U.S. cancels the export ban, customers may not turn back and buy Huawei products,” he says.

Huawei originally said its operating system could go live by the fall, while the international launch is scheduled for 2020.

 

Source

[7even]

So Huawei intended to build it's own OS then compete with big G. Well, good luck for that.