Tuesday June 25, 2019
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Experts Believe that Facebook Restrictions will Have Little Impact on Huawei

Huawei is intensively testing its own operating system, to be named "HongMeng OS" for China market or "Oak OS" for overseas market, which is likely to be launched in August or September

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FILE - The Facebook logo is seen on a shop window in Malaga, Spain, June 4, 2018. (VOA)

Chinese smartphone giant Huawei, which is currently battling the trade ban imposed by the US, has also been cut off by Facebook to comply with the sanctions, but experts believe that the move by the social networking giant would not have worrying implications on the smartphone player.

“Unlike Google, Facebook has taken a different approach to the US export ban. Facebook is suspending app preinstalls on Huawei smartphones out of the box,” said Prabhu Ram, Head, Industry Intelligence Group (IIG), CyberMedia Research (CMR).

The Facebook move would ensure that all its apps, including Instagram and WhatsApp, would not come preinstalled on future Huawei smartphones.

“Consumers can still install apps via the Google Play Store,” he pointed out.

Echoing a similar view, Faisal Kawoosa, Chief Analyst at market research firm techARC, told IANS: “This is going to be least significant thing and will go unnoticed.

“In most of the cases, even if such apps are preloaded, they still connect to Play Store to fetch the latest build, as there is a lag between app being burnt pre-shipping and the date when a user starts using them.”

However, the overall impact of the US trade ban on Huawei is likely to affect the global smartphone shipments.

Singapore-based market research firm Canalys slashed its global smartphone shipments forecast by 3.1 per cent in the wake of the ban on Huawei.

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FILE – A man uses two smartphones at once outside a Huawei store in Beijing, May 20, 2019. VOA

Search engine giant Google has urged to be exempted from the export ban citing reasons that could be bad for its technology business.

Google also fears that the export ban would create a competitor to the US-made Operating Systems (OS), which would hurt the search engine giant’s Android monopoly.

Notably, Google announced last month it wanted to work with Huawei over the next 90 days, shortly after the trade restrictions were temporarily eased on the world’s second-largest smartphone manufacturer.

“Assuming that US and China are able to accomplish a level-playing field and trade understanding, including on Huawei, before the 90-day reprieve expires later this year, Huawei’s future will be bright. But if there is no US-China deal, it would mean that Huawei would have to continue full steam ahead on life beyond US tech,” Ram noted.

Also Read- Microsoft Decides to Establish AI Training Hub in US

Huawei is intensively testing its own operating system, to be named “HongMeng OS” for China market or “Oak OS” for overseas market, which is likely to be launched in August or September, China’s Global Times newspaper said on Friday, citing unnamed sources.

“Imagine, a new OS, and a new apps ecosystem. Gaining consumer acceptance in global markets. If, unlike ZTE, Huawei does not fail and fold, and is able to rebuild itself, it will signal that major American tech companies will lose out on the second largest handset maker’s smartphone base globally. It’s a tall order, but not improbable,” said Ram. (IANS)

Next Story

Facebook’s Push to Become China’s WeChat May Kill it

As people become increasingly aware of social media’s harm, social media will lose its lustre

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FILE - The Facebook logo is seen on a shop window in Malaga, Spain, June 4, 2018. (VOA)

Facebook which accounts for 75 per cent of global ad spend that is likely to hit $110 billion by 2020 is nowhere near an immediate demise and government regulations would only strengthen the social networking giant in the short term, a new Forrester research has forecast.

However, Facebook’s push to become China’s WeChat — more than a messaging app and is full of capabilities to make life easier for its one billion users — would be its undoing.

Facebook‘s no-good-very-bad 2018 may have meant an overworked PR team but the social media behemoth is doing just fine.

It continues to report steady user and revenue growth: a 9 per cent year over year increase in users in Q4 2018 and a 30 per cent increase in revenue in the same time-frame.

“The three parties that could impact Facebook the most — users, brands and regulators — will move too slowly for it to feel any instant impact,” said Jessica Liu, Senior Analyst, Forrester.

The coming years won’t be easier, but the social media behemoth won’t suddenly collapse either, as many predict.

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FILE – The logo for Facebook appears on screens at the Nasdaq MarketSite, in New York’s Times Square, March 29, 2018. VOA

“But while Facebook’s short-term outlook might be fine, its long-term outlook is bleak,” Liu added

Despite constant negative news last year, Facebook continued to report strong quarter-

over-quarter user and revenue growth. Brands that mishandle their own users’ data and fail to inform them typically falter.

While these users and advertisers could affect change at the social media giant immediately, they won’t, thus allowing it to continue to defy the odds.

“Enacting and enforcing regulation takes so long that Facebook will be able to shore up its assets and unique advantages in the short term and eliminate any vulnerabilities before serious user, advertiser, or regulatory changes materialize,” Liu emphasised.

The social networking giant with over two billion users globally, is facing regulatory challenges as the Cambridge Analytica scandal has exposed its lapses of data privacy and security.

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FILE – A man poses for a photo in front of a computer showing Facebook ad preferences in San Francisco, California, March 26, 2018. VOA

The downfall for Facebook, said Liu, would come with its desire to build an all-inclusive social media experience, as its CEO mark Zuckerberg is planning to merge all apps like Messenger, WhatsApp and Instagram into one.

“Facebook’s hope to recreate WeChat, China’s largest messaging app turned all-in-one portal

to the Internet, presents long-term challenges,” Liu added.

WeChat primarily operates in a single country’s political and regulatory environment.

Also Read: South Korean Tech Giant Samsung Launches 2 New Tablets in India

“Facebook will need to tack on products and services to fulfill its one-app vision while global regulators threaten antitrust. It will also grapple with protecting user privacy globally while appeasing advertiser appetite for hypertargeting,” Liu noted.

As people become increasingly aware of social media’s harm, social media will lose its lustre.

“History has taught us that existing apps max out and then decline as users tire of the services or the company (like AOL, MySpace, Friendster). The Facebook app is already experiencing this; Instagram and WhatsApp will follow in a natural peak and then eventually decelerate, too,” Liu commented. (IANS)