Forbes: hardware and software together out of stock ZTE will bankrupt in a few weeks

Forbes: hardware and software together out of stock ZTE will bankrupt in a few weeks

Sina science and technology news Beijing time on April 19th afternoon, as we all know, ZTE is in big trouble. On Monday, the US government issued a 7 year ban prohibiting US companies from selling hardware and software to China Telecom equipment manufacturers.

ZTE is the second largest telecom supplier in China, second only to rival HUAWEI, and the fourth largest telecom supplier in the world. The company sells network infrastructure (such as 4G, wireless, server, routers, etc.) and Android smartphones to global operators (China Mobile, German Telecom, Softbank, Spanish Telecom and so on).

In view of all types of equipment made by the company, ZTE needs a large number of key hardware and software components made by American companies, including processors, memory, optical devices, antennas, screens, operating systems, or applications from Google, Intel, Mei Guang technology, and high Tong.


The US export ban effectively prevented the Chinese company from acquiring all American technology, resulting in the closure of its factories and the stop of sales.

Even if ZTE has the capability, ZTE will take years to redesign all its products and search for alternatives to manufactured components in the US.

Therefore, we expect that ZTE, a company listed on the Hongkong and Shenzhen stock exchanges, will apply for bankruptcy in the next few weeks without any product to sell and to miss the important 5G transformation revolution. At the same time, we also believe that many American companies are also likely to be exposed to different levels of marketing because of the loss of ZTE, which includes providing high Qualcomm to most Chinese smartphone makers.

With the fall of ZTE, HUAWEI is undoubtedly the biggest winner. But the Shenzhen company has recently been scrutined by the US government for concerns about national security, and its ultimate fate may be better than ZTE.

As previously reported, HUAWEI is currently reducing its activities in the US market and has begun to abolish American employees.

Finally, each or every mature or rapidly developing Chinese technology company, including Lenovo / Motorola, OnePlus, Oppo, TCL, Vivo and millet, should always pay attention to us decision-making and do a good job of dealing with any technical prohibition.

On the other hand, the development prospects of LG and NOKIA in the US and the world have become clearer. (white)

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