May 21, 2019

The Google-Huawei Case Study

Accept it or not, technology is a big part of human life today. The big news shock the internet community when Google announced that it will be cutting its tie with Huawei. This means that Huawei will not be able to use the licensed Android Operating System (OS) unless Google lift the restriction; however, the company can still use the open source Android OS but this will limit the company from using the Google Play Store. According to internet data, 80% of the phones in the world are powered by Android; all Huawei smart phones are using Android. Looking at this basic data, we can see that the decision of Google to restrict Huawei from using Android will have significant negative impact on the company's business.

In response to Google restriction, Huawei might possibly create its own OS, but the success of that will depend on the support of application developers. Android's success has been largely attributed to its large pool of apps in the Google Play Store, if Huawei wants to create a successful OS, it would need to have a large pool of apps as well (and large pool of app developers who wants to contribute to its app store).

Nokia bought by Microsoft which was turned into Microsoft Lumia is powered by Microsoft's very own - Windows Phone OS. Windows Phone is very efficient, it is very good in managing phone memory and applications, but its app store lacks the number of apps and the support from app developers are very minimal; this eventually led to the decline of Microsoft phone users.

The case of Microsoft Lumia and Huawei has similar points, both of these companies produce good quality phone (hardware), but if Huawei would study the case of Microsoft phone it should be careful on its approach in creating a new Operating System (OS). On the other hand, if Huawei could proved that it's OS has a superb quality and has collection of apps that could match Google, then Huawei might be the next Apple. Huawei could be match better than Apple as the company has its own advance hardware technology and being situated in China gives the company access to lower labor cost resulting to low cost of phone production. 

Huawei was included by the US Commerce Department into "Entity List" which limits the access of the company from buying technology in US without government approval. Google responded to US government order by cutting ties with Huawei.

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