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Huawei Ban: Nobody is winning if trade war continue

May 31, 2019

Loosing both software and components supply from America, HUAWEI’s smartphone business looks grim in the short run.

Who's winning ? and who's losing? Here’s what we found.

SAMSUNG

Where two are fighting , the third wins .

Fun fact,SAMSUNG stock price went up by 4% right after Google’s announcement on HUAWEI.

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2 years ago, the sales ratio between SAMSUNG and HUAWEI was 2:1, samsung can make approx. 12%-15% decent profit based on its cellphone business.

However, their profit are shrinking after that because HUAWEI’s rapid growth. Now that the sales ratio between SAMSUNG and HUAWEI has changed to1.2 :1.

Without a doubt, SAMSUNG will soon regain its market share and quickly boost profit

(Especially in Europe )after HUAWEI ban.

Will samsung dominate over 50% of Europe market share soon?

Retailer ,Consumer, Recycler

They are rush to offload HUAWEI inventory and sell them off at marked-down price as continue selling it would be a gamble for most of mobile phone trader.

For people who never own a HUAWEI phone before, they will take it as a great opportunity to get a high end HUAWEI P30/P30 pro at low price.

And you might seeing people wanting to trade in the latest one instead of old phone.

Well,the worst casefor HUAWEI phones that has been recycled will be dismantled and refine various precious metals.

Unemployment

The US unemployment rate dropped to its lowest level for more than 49 years in April, according to official figures.

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HUAWEI have been sourcing parts from US in past 15 years,30% of US based tech companies making good profit by working with HUAWEI.

Now all these companies will have to stop supplying.

So Trump’s order probably putting a large number of people in both side under unemployment risks.

Will US jobless rate can still stay at its lowest during trade war? Finger crossed.

Anyway,trade war isn't the best way to protect the American dream OR to keep China away.

The best wayto keepChina away is to ________?

Share your comments below and we would love to hear different voice.


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