- 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)