If you’re not a tech enthusiast, you might have missed the news about the US government pressuring AT&T to cancel its contract with Huawei. You have to be a real mobile enthusiast (in the US) to know who Huawei is because it is a newcomer to the US. Although Huawei is new to the US, it certainly isn’t new to the global market where it’s the second largest smartphone manufacturer, even beating out Apple. Huawei makes other products like computers, tablets, and wearables for the US market, but those products aren’t that well known either. I asked 10 colleagues of mine at my day job at a biotech (science nerds) if they had heard of Huawei before, and they all said no. I asked 15 random people at the dog park, and just like at work no one knew Huawei either. Outside of the US, Huawei is one of the most important tech companies on the planet. It employs over 170,00 people (Wikipedia), is the largest telecom provider in the world, and provides business services beyond its consumer products.
None of that really matters to you, but the deal with AT&T to sell its smartphones should matter. And it should matter that the US government pressured AT&T to cancel its deal with Huawei without real proof.
Why does it matter that the US market sells Huawei phones?
Technically you can get unlocked Huawei phones from places like NewEgg, Amazon or Best Buy. But a very small percentage of consumers get their devices from those sources. The majority of all smartphone sales in the US are done through traditional retailers like AT&T, Verizon, Sprint, and T-Mobile. Smartphones aren’t like televisions where you pay for them in full every ten years. Most people buy their smartphones from providers due to incentives and financing options that make smartphones seem like a utility instead of a luxury. Smartphones are also very expensive because many people replace them every year or two, where other appliances and gadgets have much longer lifespans.
When you think about what smartphone to buy, the vast majority of the country thinks Samsung or Apple. Don’t get me wrong, I love Samsung and Apple phones. The iPhone X and Note 8 were my favorites of 2017. But they’ve pushed out all other major players in the US market, leaving Motorola, LG, and Sony a tiny fraction of a percentage of sales that have them on the brink of cell phone extinction. With this duopoly, you’ve seen Apple and Samsung raise prices on their devices. The Apple iPhone X starts at $999, while the Samsung Galaxy Note 8 costs $949. By pushing out all other players, Apple and Samsung are free to charge what they want and consumers will continue to pay for it because it’s all that’s really available to them, especially when major cell phone service providers will cave to government speculations and give up on deals to please a crazy ass president.
I hate to get political, but that’s what this mess has turned into. The US government threatened to cancel future business with AT&T if they didn’t concede and abandon Huawei devices. The government is even pressuring Huawei, a global leader in telecom, to drop their deal to expand on the 5G network in the US market. The reasoning is still unclear, but from what I have read, here’s a quote from the Reuter’s post I referenced above:
“The next wave of wireless communication has enormous economic and national security implications. China’s participation in setting the standards and selling the equipment raises many national security issues that demand strict and prompt attention,” said Michael Wessel, a member of the U.S.-China Economic and Security Review Commission, which was set up by Congress.
This might be true, but as of right now it’s not true unless US citizens get access to this information.
Everyone in this country pays taxes and we pay for these politicians to run our country. By narrowing the cell phone market down to two players, it enables Samsung and Apple to dominate the market and continue to raise prices on us. Huawei makes incredible devices at prices that range from $100-$1200. It partnered with Google to build the Nexus 6P two years ago and that was a great phone.
For your reference, check out a few reviews about the Nexus 6P.
- Trusted Reviews
- AndroidGuys (me)
- AndroidAuthority
- The Verge
While you’re at it, look at real reviews from users from Amazon on Huawei’s budget $200 Honor 6X. (1000+ reviews)
Why didn’t the government block the Nexus 6P and deny Google business if they were truly concerned with national security? Google is one of the largest companies in the US and those two companies collaborated quite closely. I’m usually not a conspiracy theory type of person, but it makes me wonder if Apple’s decision to invest $350B into the US economy had anything to do with the US government pressuring AT&T to end its deal with Huawei. It certainly makes sense that Apple wouldn’t want the second largest phone maker competing in the biggest market. In reality, though, the government probably is using its weight to push Huawei out and that’s just stupid. It’s certainly not a free market with the government involved like they are in this situation and that’s plain, not American.
As a large portion of the US working class edges on retirement, they will be on fixed incomes and will need to pare down their costs. The last thing they will need is an $85 unlimited smartphone plan attached to a $1000 iPhone that is way too much phone for them. Beyond that class of citizens, almost no one needs a $1000 phone, but we’re trained to believe we are by the largest companies in the world to think that. That certainly won’t stop with only two major manufacturers controlling the smartphone market.
If this issue is truly about national security, is it wise to allow Foxconn, a huge phone manufacturer, to set up a plant to build devices in Wisconsin? Or is that acceptable because Foxconn is building parts for the iPhone? Hell, most of the electronics in our homes are made in China, including iPhones. What I’m saying is, at what point do we stop this nonsense? And what’s next? It’s not responsible for US government officials to pressure AT&T to threaten them with taxpayer money to keep a potentially huge player out of the smartphone market. If Huawei really is spying on us, like the US spies on us, prove it. With proof, they would have every right to kick Huawei out of the country, but it’s most likely not real and is a way to scare Americans and keep us locked into this duopoly.
I honestly hate to discuss politics, but in this instance the US government way too far. It’s only going to hurt the tech industry in the long run by leaving Huawei out. Competition drives down prices and drives innovation. I’ll be doing my part to educate deTeched readers on just how great Huawei products are by reviewing the Honor 7X in the coming months. It’s a $200 smartphone that runs Android, and should be a great phone if it follows its predecessor. Huawei is the only manufacturer who is willing to produce great phones at reasonable prices and that is the true reason why we need its phones on the market. Consumers deserve more choices than the multitude of $700+ options that are unnecessary.
I truly hope the government comes to its senses and reverses this decision in the near future. Or I hope AT&T, Verizon, Sprint or T-Mobile grow a spine and do what’s right for the consumer and sell Huawei devices.