Blocking the acquisition of Qualcomm is just the first example that politicians want to have power over smartphone manufacturers. Huawei's problems with entering the US is another. Will not we see some brands in stores in the future?
You will definitely find the situation that has recently occurred in the US smartphone market. If you do not associate it, I will try to present it in detail here, because more and more often we are dealing with events that I consider as a fan of technology to be at least disturbing.
The US president has blocked the Qualcomm transaction
Yes, you read it well. Such an important persona, which is the president of one of the major powers of the world, has devoted its time to dealing with the acquisition of one company by another. The fact is that this transaction can easily be called a takeover of the century – at least when it comes to the sphere of new technologies. The reason is, how could it be otherwise, the security of the United States of America. I do not buy it. Do you know what the effect is? Qualcomm shares went down by 3.8 percent. In the scale of such a huge company is a loss, which is hard to make up in a few days. Interestingly, Broadcom shares have gone up.
The American government does not want you to buy Huawei
You certainly remember that Huawei has a huge problem with entering the less powerful US market. The company has definitely grown up to become recognizable there, and seriously threaten the domination of Apple and Samsung – in the US, no one else basically counts. Xiaomi tries, but the government is reluctant to look at the invasion of China. Why? Because it's economically their biggest rival. This can be seen in many industries, we do not have to limit ourselves to smartphones, or even more widely – to electronics. Extraction of raw materials that are necessary to create them is the best example. To build a device based on integrated circuits, more than just silicon is needed. Rare earth metals (REE) is a business in which the Chinese rule – over 90 percent of mining is their merit.
Why do politicians look askance at China?
It will definitely surprise you. Something that is neatly called national security is the main reason. If anyone thinks that smartphones originating in China are able to spy on American citizens, no one will change that opinion. As in the Cold War, the main public enemy was everything that is related to Russia, so now the Middle Kingdom takes over. Does this mean that we also have something to be afraid of?
Politics and technology? Let's not mix it up
You can say that the US is far away from us. It is true that this market is significantly different from the European one. They rule the flagship, which you can buy for a reasonable amount, compared to your earnings. In Europe, a good part of sales is based on medium-sized brands, only later on flagships. At this point, we come to Poland. In our country, Chinese smartphones are a powerful piece of cake. The sales results show that we are not so attached to brands, which we simply choose the most cost-effective device. This scheme breaks down the iPhones, which still form a certain status indicator – it does not matter that the Android flagships have the same prices. The legend is alive and well. Why am I talking about this topic at all? Because the situation in the US can be a precedent that will open the way to the same practices for the rest of the world. Unhealthy suspicions of spying? The brand ceases to exist in a given country. I am a conscious user and I want to have a choice. I wish you and we would not be restricted in the future. Source: phonearena