- If you wanna buy a cellphone in Asia,
you might come to a smartphone
center like this one
here in Hong Kong.
You'll notice that Huawei is everywhere.
The Chinese company is
the world's second biggest
seller of smartphones.
And although its devices
aren't that common in the US,
they're actually very American.
This new model which the
company lent me for this video,
contains software and parts
that would be familiar
to any American smartphone user.
It comes with Google Maps,
so I know where I'm going.
(bell rings)
I use Gmail to catch up on messages.
The scratch-proof screen
is even made in the US.
But soon, these features
and software could become
unavailable for millions of Huawei users
and that's because of a US
Commerce Department blacklisting
that prevents American companies
from selling it technology.
Huawei has been accused
by the US government
of being a national security threat,
which Huawei denies.
- Huawei is an instrument
of the Chinese government.
- The Trump administration
has said that Huawei
could help the Chinese
government spy using
its products including 5G equipment
and smartphones like this one.
This means that if the
ban remains in place,
American tech companies
won't be allowed to export
crucial hardware and software to Huawei.
That's everything from
semiconductors to proprietary apps.
Out of $70 billion that Huawei
spent on procurement in 2018,
about 11 billion was to US firms
including Qualcomm, Intel
and Micron Technology.
Huawei also says it has 92 core suppliers,
33 of them are US companies
outnumbering China's 25.
So although the exact
impact on US companies
from this ban will be hard to predict,
we do know that the American
companies will be feeling
the Chinese company's pain
from this trade blockade.
Now let's have a look inside this phone
and see which American
components go in it.
First, let's look at the software.
These are the apps and services
that people rely on everyday.
Huawei doesn't have its
own operating system,.
So far its go-to has
been Google's Android.
The suite of apps like Google
Maps, Gmail and YouTube
have helped make Huawei
smartphones globally popular.
But now with the US restriction,
future models of Huawei phones,
won't automatically have
those apps installed.
Users of Google Maps and Gmail will have
to find open source alternatives.
Huawei will also lose access
to some security updates
from Google after a 90-day grace period.
Potentially exposing them
to software and threats.
There are thousands of little
parts that make up one phone.
Again, many are made in the US.
Corning makes the phone's shiny glass body
called Gorilla Glass.
It gives Huawei smartphones
that tough exterior.
It's also a popular brand
among other smartphone makers.
Now, look inside.
The printed circuit
board is like the brain.
It's an essential part
of any electronic device
housing many of the most
important components on the phone.
These are the audio amplifiers.
And they are made by the
Texas company Cirrus Logic.
They make sure you get a
loud and clear audio signal
when you're listening to
music or receiving a call.
Massachusetts-based company Skyworks makes
the phone's power amplifier.
It's crucial for keeping
your phone connected
to your carriers network
so you can make calls
or stream your favorite show.
Every phone needs a robust storage chip
for your selfies and videos.
Huawei's latest model uses a chip
from the Idaho-based
company Micron Technology.
There are plenty of other critical parts
that are made in the US, but
the Chinese circuit board
also has components from Japan, France,
Germany and of course China.
For decades, globalization
has pushed companies
to do business across borders.
This phone is just one
example of how many companies
are now caught up in the
US actions against Huawei.
And how unpredictable doing business
in the global supply chain can be.
We reached out to these
companies for comment.
Google said it's complying with the order
and reviewing the implications.
Skyworks told us it's
suspended shipments to Huawei.
Micron said it's done the
same and it's also evaluating
the impact on its business.
Others didn't respond to our requests.
Huawei has been under fire
from the US government
for a while now and the company
has been stockpiling parts.
Even building its own operating
system to replace Android.
While Huawei may be able to
cope by finding substitutes
for its US components,
it'll come at a cost.
Likely in the form of
hardware and software
that's just not as good.
The ones who notice the difference
will be the millions of
users of Huawei phones.
(soft music)
