"However, rather than a reprieve for the Chinese firm itself, the slight easing of rules is squarely aimed at Huawei's past customers, such as rural broadband providers or owners of its Android phones", UBS said. The company was just granted a trademark for an in-house operating system from China's National Intellectual Property Administration. The world's largest software maker still won't comment on whether it is rescinding Huawei's licence to use the Windows operating system. Their hesitance is due to uncertainty about Google's previous announcement that it would restrict Huawei's access to updates of the Android operating system in compliance with a U.S. ban. The company said that it was lowering its quarterly outlook since sales to Huawei totaled 18 percent of overall revenue in the latest quarter.
"Panasonic announced in [an] internal notification that it should suspend transactions with Huawei and its 68 affiliates that were banned by the United States government", said the firm.
The loss of Android is a blow to Huawei's wildly successful smartphone business.
While Huawei mocked Apple on several occasions, claiming its devices are so much better that iPhones, the founder of the company has recently admitted that buying iPhones is something that even he does every once in a while.
Huawei chairman Ren Zhengfei has tried to quell some of this nationalist zeal surrounding the company's phones in light of the USA trade wars.More news: OnePlus 7 Pro update coming to improve HDR effect and Nightscape mode
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Reportedly, Panasonic has instructed employees to stop transactions with Huawei and its 68 affiliates covered by the US ban.
She predicts Huawei handset shipments will decline another 23 per cent next year but believes the company could survive on the sheer size of the China market.
Huawei is the second-largest cellphone producer in South Africa, after Samsung. A string of Japanese carriers, including NTT Docomo, said they were also considering delaying the launch of Huawei's new smartphones. An escalating trade war between the USA and China could mean higher prices on a broad array of products from toys to clothing. But future phone models won't be able to license popular Google apps like Gmail, Google Maps and Play, and Google will lose the ability to provide security and software updates for users beyond a 90-day reprieve announced by the Commerce Department this week.
Negotiations over how to cut the huge, longstanding USA trade deficit with China and resolve complaints over Beijing's methods for acquiring advanced foreign technologies foundered earlier this month after Trump raised tariffs on billions of dollars of imports from China.