Google’s restriction of business ties with Huawei, the world’s No. 2 maker, could hit the demand for the Chinese firm’s devices overseas by reducing them to be paperweights and give a leg up in cementing its lead in devices, a media report said on Tuesday.

Rival phone brands Samsung, Xiaomi, Oppo would benefit from Google’s suspension of services to Huawei, Hong Kong-based Morning Post reported.

Last week, the had placed and its affiliates on a blacklist, a move that essentially bans the Chinese firm from purchasing parts and components from American without the approval.

Google, a unit of Alphabet Inc., said it is complying with and “reviewing the implications” of the requirement for export licenses for sales to Huawei, which uses Google’s in its

founder Tuesday downplayed the impact of the US order against his firm, saying “underestimates” the telecom giant’s strength.

Google’s move to curtail access to its means that the Shenzhen-based company will no longer be able to run Google’s popular apps and services such as Gmail, YouTube or its Play app store on future devices, the Post said.

For markets outside China, the removal of these critical services will mean that overseas consumers will think twice about buying Huawei devices in future. That is a big problem for Huawei, as about half of the 208 million it shipped in 2018 went to markets outside of China, it said.

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“As far as overseas markets go, this move just turned Huawei’s upcoming phones into paperweights,” said Bryan Ma, at IDC

“The phones won’t be very useful any more without apps on them, and other apps will be unable to call on services,” the Post quoted him as saying.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)



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