Following Huawei’s kerfuffle, all eyes are on China’s tenuous relationship with the United States. However, for all of China’s troubles, the Asian country is making some moves on its own.
In the corporate world, Qualcomm has gone on a warpath against a bunch of other companies — Apple and Huawei. The chipset maker has even hired a smear campaign against Apple supposedly. Now, the company has advanced more chess pieces in the legal department.
Recently, Qualcomm engaged in a legal battle against Apple in China. According to the company, Apple violated some critical software patents. Allegedly, the patents allow photo resizing and app management on a touchscreen.
To Qualcomm’s favor, China issued a guilty verdict against Apple. Additionally, the Chinese court has banned the American company from selling and importing most of its iPhones to the country.
The ban includes all the company’s older models. Surprisingly, it doesn’t include this year’s triage of new iPhones — the iPhone XS, XS Max, and XR. Apparently, the ban only covers older software versions.
Luckily for Apple, the ban hasn’t been completely enforced yet, allowing the company to remain in business for now. According to Apple, “All iPhone models remain available for our customers in China.”
In response, Apple will work to overturn this verdict in the future. “Qualcomm’s effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world… We will pursue all our legal options through the courts,” Apple said.
Besides this battle, Qualcomm claims that Apple owes them US$ 7 billion in damages.
The move opens up another theater in the ongoing trade war between China and America.
Xiaomi’s 2019 revenue exceeds CNY 200 Billion
A good year for Xiaomi!
Xiaomi Corporation is an internet, smartphone, and smart hardware company. Their products are fundamentally connected by their Internet of Things(“IoT”) platform. And, they’ve just hit the jackpot with their audited consolidated results for the year 2019.
Their Founder, Chairman, and CEO, Mr. Lei Jun says: “Despite headwinds from the Sino-US trade war and global economic downturn, Xiaomi stood out in 2019 with a commendable set of results as our revenue exceeded RMB200 billion for the first time.”
2019 was a good year for Xiaomi. They’ve managed to achieve significant growth across all of their business segments. They’ve earned themselves a total revenue of over CNY 200 billion for the first time (reaching CNY 205.8 billion).
Xiaomi managed to celebrate several key milestones. From successfully launching their independently operated dual-brand, Xiaomi and Redmi, focusing on ‘5G+AIoT’ as a strategic roadmap, to their inaugural entries into the prestigious ranks of not just the Fortune Global 500 but also, BrandZ’s Top 100 Most Valuable Global Brands.
Mr. Lei Jun says, “while the entire world is still under the dark shadows of COVID-19, we have maintained our keen focus on efficiency to tide over this economic ‘black swan’ with everyone. At Xiaomi, we firmly believe that our long-term business success is underpinned by technological innovations… Overall, we remain committed to using technology to connect and improve lives everywhere in future.”
Huawei acknowledges the US ban is hindering its sales
But the US government isn’t ready to negotiate
For the first time since the U.S. imposed trade sanctions on Huawei, the company has acknowledged that its sales have been affected. Even though the company’s revenue grew by almost 20 percent to nearly US$ 121 billion, it says the numbers could’ve been higher had the sanctions not been imposed.
Last year, Huawei was added on a U.S. blacklist known as the Entity List. It restricted American firms from doing business with the Chinese telecom giant. For the end-user, it meant that Huawei phones won’t have Google apps pre-installed out-of-the-box. Two of its most recent flagships — the Mate 30 and the P40, were released without licensed Google apps.
Eric Xu, Huawei’s rotating chairman, told CNBC that they’re projecting a revenue loss of US$ 10 billion due to the ban. The ban hasn’t come to full effect yet, but it’ll be extremely damaging for their international expansion plans in the future. The company wants to transact with Google, but the U.S. administration has left no choice for either of them.
The ban has not only sealed off the American market for the company, but it also can’t source components and other software technologies from American counterparts. Google is just one of these examples. Huawei can’t even acquire Intel processors for its laptops.
Huawei never had a considerable smartphone market presence in the North American country. This is not a big deal for the company in its home market China because Google apps have been banned there for years now.
As a mitigation plan, the company accelerated the development of its own operating system called Harmony OS, but it’s restricted to TVs for now. To bridge the gap of missing Google apps, the company has also been actively pushing its own suite of apps via Huawei Mobile Services.
Google will contribute $800 million via ads to fight Coronavirus
Here’s why it’s a notable contribution
Google has committed to donating more than US$ 800 million to support businesses, organizations, and healthcare workers as part of its fight against the Coronavirus pandemic. Breaking it down, it says it’ll give the World Health Organization (WHO) and global government agencies a total of US$ 250 million in ad allowances.
Google CEO, Sundar Pichai, confirmed that another US$ 340 million in ad credits will be provided to small and medium–sized businesses who’ve actively advertised via them over the last year.
Furthermore, the company is establishing a US$ 200 million investment fund to help small businesses get access to capital. Lastly, it’ll be offering US$ 20 million in Google Cloud credits to researchers and academicians to unleash the power of computing on the virus. Research requires an exorbitant amount of computing power since formulas, calculations, and simulation models are supremely complex.
Google may seem like a technology company, but business-wise, it’s the world’s largest advertising company. Everyone who has access to the internet has at some point, used a Google service. This is how the company attracts users via its suite of services and serves them ads. For a behemoth like Google, it’s easy to reach out because of its robust advertising network.
The company not only serves ads on its own services but also exports out ads to other websites via services like AdSense. While it may seem Google isn’t actually giving away money from its profits but from its revenues, it doesn’t matter. The end contribution to the cause is what matters. And the company is leveraging its power to reach out.
These ads can help local authorities across the world fight misinformation about the virus. Moreover, also spread awareness passively while people are indoors in isolation and constantly connected via the internet.
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