Huawei smartphone sales in the red for more than a week
France says local plants must remain open in Renault-Fiat merger
HUAWEI smartphone sales at retail shops in Phnom Penh have been in the red for more than a week following Google’s decision to cut off its business ties with the Chinese tech giant.
Nop Manet, a stock manager at Seav Lin phone shop, said Huawei smartphone sales at her shop had gradually fallen, especially high-end devices.
“Sales are currently dropping because people are worried that the phone will be unable to update apps,” she said, noting that as time went by, a higher number of Huawei customers are selling off their smartphones.
US President Donald Trump recently banned US companies in the telecom sector from doing business and sharing technology, services and components with Chinese tech giant Huawei, alleging that the company is threatening US security.
An owner at a Phsar Depot Market phone shop, who asked not to be named, expressed concern that the move could impact his business. He said Huawei phone sales have been very quiet for a while and supply from distributors have also fallen.
“The news of US companies’ termination of relations may be the main reason. It’s forcing Huawei’s customers to turn to other companies’ products instead,” he said.
Although Google has announced that certain apps will remain available for Huawei phones currently in the market, customer confidence remains unstable.
“Most of Huawei’s consumers remain concerned that various apps will become unavailable, but I think that there will be no problems with the products that have already been released,” he said.
The ban means that Huawei’s next-generation phones will no longer be able to use Android, as well as other Google apps such as Gmail and Play Store.
Dara, who owns a phone shop at Khlaing Romsev Market, said many of his customers this week were looking to sell their phones.
“Because I have a lot [of Huawei phones currently] in stock, I now have to cut on buying more until I can get rid of some,” he said.
Japanese companies such as Panasonic and SoftBank have also joined the US, announcing that they will no longer cooperate with Huawei.
However, the manager of a Nika Phone Shop in Phnom Penh said all Huawei phone models were selling well at his shop.
“Huawei phone sales at my shop are still as good as usual,” he said. FRENCH Finance Minister Bruno Le Maire on Tuesday demanded that local plants remain open as part of a proposed merger between ItalianUS auto giant Fiat Chrysler and France’s Renault.
The French government, which owns a 15 per cent stake in Renault, has so far backed the idea of a merger, which would reshape the industry by forging the world’s third-largest automaker.
But Le Maire, speaking on RTL radio, asked Renault board chairman Jean-Dominique Senard for a guarantee “on the preservation of jobs and industrial sites in France” and a commitment that no factory be closed in the country.
“This is the first guarantee that I requested from Mr Senard on the opening of these negotiations with Fiat,” Le Maire said.
“Since I have agreed to the opening of negotiations, it is up to him to come back to me in the coming days on the guarantees he was able to obtain from Fiat.”
When Fiat presented Renault with the 50-50 merger proposal on Monday, it said the deal would not result in any production sites closing.
Renault said it would study Fiat’s proposal “with interest” and after a board meeting over what it termed a “friendly” offer, the French carmaker said it would enter talks on a merger.
Le Maire confirmed that the French state would not increase its 15 per cent stake in Renault, so would hold around 7.5 per cent in the new group after the 50-50 merger.
The CGT union at Renault has been wary of the plan, urging the French government to maintain a blocking minority after any deal.
The proposal comes as Renault’s years-long partnership with Japanese automaker Nissan comes into question after the arrest and subsequent ouster of Carlos Ghosn, who had been Renault CEO as well as Nissan chairman.
Renault holds 43 per cent in Nissan, which in turn owns 15 per cent of its French partner. Despite pledges on both sides to pursue the alliance, analysts say the tensions might be pushing Renault to explore alternatives.
Le Maire said he was waiting for the deal “to be done as part of the alliance between Renault and Nissan”.
He also asked Senard for assurances that “French interests will be well represented” in the new group and called the merger “a great opportunity for Renault and the European automotive industry”.
The tie-up has been seen as potentially beneficial to both sides, giving Fiat Chrysler access to Renault’s electric car technologies while the French group could use Fiat’s extensive operations in North America to tap into the US market.
Italy’s government has been positive towards the plan, with outspoken deputy prime minister Matteo Salvini calling it a “brilliant deal”.