ZTE delays earnings release following U.S. export ban

ZTE’s phones may get blocked from using Android
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20 April, 2018

The results were previously scheduled for Thursday.

It announced the delay as components makers, wireless carriers, retailers, telecommunications firms and Alphabet Inc's Google, developer of the Android operating system, sought to clarify how they will be affected by the order, announced on Monday by the U.S. Commerce Department.

"If ZTE can work out a deal, the question is how long will it take and how much more money will they need to pay". "It's rare that you go from A-OK to no transactions overnight". As a result, the Department of Commerce slapped ZTE with a seven-year export restriction.

One state-run Chinese newspaper, the Global Times, said in an article this week that the US actions against ZTE is a cause for China to bolster its production of smartphone chips. Trading in its shares has been suspended in China since Tuesday. Microsoft's discontinuation of Windows Phone, BlackBerry's decision to use Android, and Apple's exclusivity of iOS to their own devices would put ZTE in a tight spot.

"I never say never", the official said earlier this week.

The ban and fine was put in place after a 5-year investigation found that ZTE had circumvented embargoes on shipping US-made components into both Iran and North Korea using a series of shell companies.

Although Google's Android operating system - which Huawei and ZTE rely on to power their smartphones - is an open source software, a number of Google's key apps aren't, and neither is access to the Google Play Store.While Huawei appears to have given up on the American mobile market, at least in the short term, the new actions would likely severely damage ZTE's mobile sales in the United States, where it has achieved a 12 percent market share in just three years, Plouffe added.

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ZTE and Google have been discussing the impact of the ban, a source familiar with those discussions told Reuters on Tuesday.

During one three-month period previous year, Huawei overtook Apple to become the world's second largest smartphone maker, according to figures by Counterpoint Research.

ZTE responded that it was "assessing the full range of potential implications that this event has on the company and is communicating with relevant parties proactively in order to respond accordingly", the Wall Street Journal reported.

The world's telecom giants due to do battle over licences for 5G wireless technology [/ame-cRepCRights] Despite the apparent security threat from Huawei and ZTE's technology, neither the U.S. of Britain has recommended that the two firms' hardware be immediately removed. Preventing companies like Qualcomm from supplying ZTE with the electronics that it needs to continue manufacturing phones.

News of the memo was first reported by the South China Morning Post.

The moves threaten to further complicate relations between the United States and China. Most ZTE phones sell for below $300, a low-end segment of the US market, ZTE's mobile chief executive, Lixin Cheng, told Reuters in January.

"Hidden "backdoors" to our networks in routers, switches, and other network equipment can allow hostile foreign powers to inject viruses and other malware, steal Americans' private data, spy on US businesses, and more", said FCC Chairman Ajit Pai, who introduced the proposal.


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