Leading technology manufacturer Huawei Technologies is focusing on its budding cloud business which still has access to American chips despite the country’s sanctions against the company.
The Chinese firm in the past few months has been facing legal sanctions from its European and American based production centres. In the United Kingdom (UK), Huawei has been ordered by the Supreme Court to work with the country’s patent companies in global deals while in France, Huawei’s mobile antennas is being phased and in the United States, the technology makers’ temporal license has expired.
The Company is therefore resorting to its cloud computing business which sells computing power and storage to companies, including giving them access to artificial intelligence. The cloud business unit has been growing rapidly.
Earlier this year, Huawei put the unit on an equal footing with its smartphones and telecoms equipment businesses.
According to a recent Financial Times report, the unit was stepping up its offerings and Beijing will increasingly support the company through public cloud contracts.
The administration of U.S. President Donald Trump has restricted technology exports to Chinese companies in particular, notably Huawei, citing national security risks.
This development may come as good news to Huawei’s competitors especially Apple and Samsung and most recently Xiaomi who has been actively competing to take Huawei’s place in the midst of the crisis.
Experts say Huawei may exit the smartphone scene altogether if the company’s current crisis persists.
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I’m Deborah Aba Narkoah. I’m an avid reader, writer and public speaker.
