TOKYO • The trade war between the United States and China is about to take its biggest bite out of Huawei Technologies yet, after Google confirmed the upcoming Huawei flagship phone will not have licensed Google apps.
The Chinese giant is expected to unveil its new Mate 30 Pro next month, making it the first top-line phone launch since the company was blacklisted by the US and forbidden from trading with American partners.
The Trump administration had signalled several times it would ease sanctions on Huawei, leaving uncertainty about its ability to work with US suppliers of chips and software.
But Google has now said its licensed apps will not be on the next Huawei device.
For Huawei, this effectively sinks the Mate 30 Pro in markets outside of its native China.
Bloomberg News reported in June that the blacklisting could result in a 40 per cent to 60 per cent drop in overseas sales.
A senior Huawei executive said this month restrictions would cost its consumer business about US$10 billion (S$13.9 billion) in revenue growth, a "little less" than billionaire founder Ren Zhengfei's initial estimate.
"Huawei can't survive outside of China as a brand without Google apps and services," said Mr Anshel Sag, mobile industry analyst at Moor Insights & Strategy. "Everyone outside the country knows and is accustomed to using its software and services, even iPhone users. So, for Huawei not to offer those to their customers will be a major loss."
What the restrictions would cost Huawei's consumer business in revenue growth.