The Pak Banker

Huawei shipments could fall by up to a quarter this year

Boeing says it has corrected simulator software of 737 MAX jets

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China's Huawei, hit by crippling U. S. sanctions, could see shipments decline by as much as a quarter this year and faces the possibilit­y that its smartphone­s will disappear from internatio­nal markets, analysts said. Smartphone shipments at Huawei, the world's secondlarg­est smartphone maker by volume, could tumble between 4% and 24% in 2019 if the ban stays put, according to Fubon Research and Strategy Analytics.

Several experts said they expect Huawei's shipments to slide over the next six months but declined to give a hard estimate due to uncertaint­ies surroundin­g the ban.

The U.S. Commerce Department blocked Huawei from buying U.S. goods last week amid its escalating trade spat with China.

The ban applies to goods and services with 25% or more of U.S.-originated technology or materials, and may, therefore, affect non-American firms.

Tech companies including Google and SoftBank Group-owned chip designer ARM have said they will cease supplies and updates to Huawei.

"Huawei may be wiped out of the Western European smartphone market next year if it loses access to Google," said Linda Sui, director of wireless smartphone strategies at Strategy Analytics.

She predicts Huawei handset shipments will decline another 23% next year but believes the company could survive on the sheer size of the China market.

Fubon Research, which previously forecast Huawei would ship 258 million smartphone­s in 2019, now expects the company to ship just 200 million in a worst-case scenario.

Huawei commands nearly 30% of the European market according to industry tracker IDC, and shipped 208 million phones last year, including half to markets outside China. The company counts Europe as the most important market for its premium smartphone­s.

Huawei has said it has been developing the technology it needs to be self-sufficient for years.

But experts are not buying the company's claim.

They said key components and intellectu­al property needed in Huawei's devices are not available outside the United States.

Huawei would potentiall­y need to lay off thousands of people and "disappear as a global player for some time," said Stewart Randall, who tracks the chip industry at Shanghai-based consultanc­y Intralink.

Potential buyers of Huawei's phones are likely to switch to high-end devices from Samsung Electronic­s and Apple Inc, and also buy mid-end phones from domestic rivals OPPO and Vivo, analysts said.

"It leaves an amount of share in its wake that can get picked up by competitor­s, particular­ly Samsung given its strength in regions like Europe," said

SEATTLE: Boeing Co has made correction­s to simulator software that mimics the flying experience of its 737 MAX jets, which were involved in two fatal crashes, and the company has provided additional informatio­n to device operators, a spokesman said on Friday. The spokesman, Gordon Johndroe, said the changes will ensure that the simulator experience is representa­tive across different flight conditions and will improve the simulation of force loads on the manual trim wheel that helps control the airplane.

The comments came after the New York Times on Friday reported that Boeing recently discovered that the flight simulators airlines use to train pilots could not adequately replicate conditions that played a role in the 737 MAX crashes.

"Boeing is working closely with the device manufactur­ers and regulators on these changes and improvemen­ts, and to ensure that customer training is not disrupted," Johndroe said. Although the simulators are not built by Boeing, the planemaker does provide the underlying informatio­n on which they are designed and built, the New York Times said.

The 737 MAX was grounded in March following a fatal Ethiopian Airlines crash that killed all 157 on board just five months after a similar crash of a Lion Air flight of a 737 MAX killed 189 people.

Bryan Ma, who researches smartphone market at IDC.

Huawei handsets are already drawing fewer clicks from online shoppers since the United States blackliste­d the company, according to PriceSpy, a product compari

the global

son site that attracts an average of 14 million visitors per month.

"Over the last four days, Huawei handsets have slumped in popularity - receiving almost half as many clicks as they did last week in the UK and 26% less

on the global stage," PriceSpy said.

The export ban on Huawei could also delay China's 5G rollout, Jefferies analyst Edison Lee said. Huawei has said it signed 5G contracts with 40 clients around the world.

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