The US-China Trade War is far from over and Huawei is stuck in the middle as collateral damage. The telecommunication giant has faced a plethora of challenges this year and there’s no long-term solution in sight.
In a quite surprising revelation, Huawei alleges the US Government is launching “cyber attacks” against it. The claim is one of many made in a press release, and heightens an already tense relationship between the company and US authorities.
US gov’t bullying Huawei
Huawei stressed that in addition to pushing other countries to ban its products, the US government “has been using every tool at its disposal — including both judicial and administrative powers, as well as a host of other unscrupulous means — to disrupt the normal business operations of Huawei and its partners.”
The company further added that the US Government is threatening its employees. The release went on to say the US Government has been “instructing law enforcement to threaten, menace, coerce, entice, and incite both current and former Huawei employees to turn against the company and work for them.”
Although it isn’t entirely clear what the desired outcome of this statement actually is, it is a new approach. So far, we’ve only seen Huawei take a back seat and absorb all the allegations and sanctions being thrown at it. They’ve been diplomatic in their communication and refrained from being on the offensive.
(1/4) For months, the U.S. has leveraged its political and diplomatic influence to lobby other governments to ban Huawei gear, using every tool at its disposal to disrupt normal business operations of Huawei and its partners. Read more here: https://t.co/xVDt2lzwXx pic.twitter.com/VPRfYjhveN
— Huawei Facts (@HuaweiFacts) September 3, 2019
All this on the heels of the Mate 30 launch
The company is all set to launch the Mate 30 series and unfortunately, it won’t be having Google Play services. This is a huge drawback for the company and it has already kicked-off a secondary route of creating its own operating system. But, that’s still a long way down the road.
The US Government or the President, are yet to directly respond to these allegations. There are no signs of the Trade War cooling down and we expect to see more allegations being thrown at each other in the coming weeks.
OPPO wants to build its own chipsets, hires talent from MediaTek
Also trying to tap Qualcomm and Huawei talent
In the last few years, the US war against Huawei has ramped up considerably with no end in sight. However, though the crackdown was against only a few Chinese companies, other seemingly innocent companies have found themselves just as affected as Huawei. For one, American companies, like Google and Qualcomm, have to deal with the loss of a valued client. On the other side of the Pacific, other Chinese companies are also feeling the heat from Huawei’s troubles.
For example, OPPO has started developing its own processors in the wake of Huawei’s chip problem. Last year, the Chinese company filed a new trademark — named the OPPO M1 — through the European Union Intellectual Property Office, according to LetsGoDigital. Presumably, the new property corresponded to an upcoming in-house processor. However, the M1 has since faded into oblivion.
Today, according to Nikkei Asian Review, OPPO has not abandoned its processor project. In fact, the company has started ramping up its efforts for an in-house chip. “OPPO has been aggressively recruiting chip talent since last year as they realized that owning the chip design capability will give it more control over its supply chain,” Nikkei’s source said.
OPPO has reportedly acquired high-ranking executives from MediaTek including a former executive for Xiaomi. Further, the company has tried tapping developers from Qualcomm and Huawei’s HiSilicon.
Much like Huawei’s efforts, OPPO’s aggressive hiring aims to build a team for in-house development. Currently, OPPO still relies on third-party suppliers to build its phones like Qualcomm and MediaTek. With Huawei being attacked on all fronts, OPPO is in as much risk if the US implements a wider ban against Chinese companies. Recently, the US wants to take away Huawei’s ability to make its own in-house chips.
iPhone 12 series will get almost all its OLED screens from Samsung
Around 80 percent!
By now, it’s no surprise that Apple sources some of its components from its competitors. Notably, the company obtains a portion of its screens from Samsung, one of the world’s most prominent screen suppliers. However, an upcoming report predicts a larger ratio than expected.
As reported by MacRumors, Apple will supposedly source around 80 percent of its OLED supply for the upcoming iPhone 12 series from Samsung. Meanwhile, the remaining 20 percent will come from LG and BOE. According to previous rumors, Apple was already talking with Samsung and LG prior to the report.
Of course, this isn’t the first time Samsung took a majority of the iPhone’s main supply line. Notably, the iPhone X obtained all of its OLED screens from Samsung Display. The iPhone X was the company’s first OLED smartphone.
Previously, rumors predicted five new iPhone models coming this year. Earlier this year, Apple launched the first model, the new iPhone SE. Naturally, because of the model’s budget-friendly positioning, the iPhone SE only had an LCD screen.
Hence, after the iPhone SE, Apple is still slated to launch four more models this year — presumably from the entire iPhone 12 series. According to more rumors, Samsung will provide the screens for three of these models, leaving the final model for LG and BOE.
If no further delays hamper Apple, the iPhone 12 series will still launch later this year.
Philippines wants to tax Netflix, Spotify to increase coronavirus relief funds
Might add 12 percent to current prices
After two months of community lockdowns, the Philippines’s response to the pandemic remains controversial at best. At the time of publishing, the country has 14,035 confirmed cases of COVID-19 and 868 deaths.
Recently, Congressman Joey Salceda, currently chairing the Committee on Ways and Means, has proposed a new tax aimed against the country’s biggest social media and entertainment platforms: Facebook, Google, Netflix, YouTube, and Spotify.
Currently, the globally recognized companies are not taxed for putting up ads for goods on online marketplaces in the Philippines. Meanwhile, other entities still pay the 12 percent value-added tax.
As reported by Reuters, the proposed tax will siphon more funds into the country’s pandemic response, including a “national broadband project and digital learning [programs].” However, the bill’s provisions are not available to the public yet.
According to the Philippine Daily Inquirer, the tax is against both currently untaxed advertising and services. For merchants selling goods and advertising online, “only 50 percent… pay VAT.” Further, Salceda proposes that digital advertising, especially those done by foreign companies, must course through an official country representative.
For services, Salceda suggest an additional 12-percent tax on entertainment subscriptions. However, a big question lies on who will ultimately carry the blow of the new tax. Is it the company itself or the consumers through higher subscription fees? Right now, Netflix and Spotify subscriptions are slightly lower than their American counterparts. Netflix Philippines has declined to comment.
However, as a bill is still just a bill, no one knows if and when the new tax will push through.
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