Huawei dream of becoming the first maker to bring the 5G-capable smartphone to the US has turned futile with the latest announcement from the US intelligence agencies. In a latest the chiefs of six top intelligence agencies have that include the heads of FBI, CIA and NSA have told its citizens to better avoid products or services offered by the Chinese manufacturer.
This is a big blow to the future plans of Huawei which aims to garner a major foothold in the American Market. Not long ago leading carriers such as Verizon and AT&T have dropped their plans to sell the Huawei phones. This step is taken by the carriers after facing extreme pressure from the US government over security concerns. Earlier India too has warned its army to avoid usage of Chinese handsets as it suspects them of carrying undetected spying activity.
This decision of US government has upset Huawei plans and which is clearly visible in the Keynote address delivered by its CEO Richard Yu at CES. He expressed his frustration over the US decision against Huawei that led to the partnership with the carriers for the sale of their smartphones. Notably, in contrast to other countries, 90% of the smartphones are sold by carrier channels in the US. However, presently the company is selling the unlocked version of its flagship Mate 10 Pro through Amazon.
In response to the issue, Huawei in a statement said that it is trusted by the customers in 170 countries worldwide and in no way poses any Cybersecurity risk. The intelligence agencies fear that the handsets have the capability to modify or steal information without the user consent. Their fears are further boosted by the fact that its founder was a senior engineer in the Chinese liberation army. Huawei has even surpassed Apple to become the worlds Second largest Smartphone maker in terms of sales.
But with the latest warnings issued by the US intelligence further dents Huawei’s hopes of garnering success in US markets in the near future.