Samsung’s share price jump above 4% as rival Huawei loses its footing
Samsung shares soared to as high as 4.3% during afternoon trade in Seoul before closing the day’s trading higher by 2.74% or 1,150 Korean won, at 43,150 Korean won.
Shares of South Korean smartphone maker Samsung Electronics rose by more than 4% on Tuesday as investors bet that the smartphone maker will benefit from the headwinds faced by its rival Huawei on its ongoing strife with the United States (US) and its tech firms.
Samsung shares soared to as high as 4.3% during afternoon trade in Seoul before closing the day’s trading higher by 2.74% or 1,150 Korean won, at 43,150 Korean won.
Google cuts Huawei off
US tech giant Google said this week it is severing ties with Huawei to comply with an executive order issued by US president Donald Trump. The announcement came as a huge blow to the privately-owned Chinese firm, as this would mean that it can no longer have access to Google’s proprietary services such as Google Maps and Gmail apps.
Last week, Mr Trump declared a “national emergency” relating to threats against information and communications technology and services. Moments later, the US Department of Commerce said it had put Huawei on a blacklist that could forbid it from doing business with American firms.
With the ban, it would damage Huawei’s ability to sell smartphones outside of its home country, and that setback could allow Samsung to gain more market share, analysts said.
In the first quarter of this year, Samsung took up 23.1% of global smartphone sales, while Huawei took up 19.0%, data from International Data Corporation showed.
Google said it is blocking Huawei from some updates to its android mobile operating system, a platform which powers most of the world’s smartphones.
Although users can still update their apps at the Google Play Store, there is uncertainty to whether if the next version of Google’s android will be available on Huawei devices and for future Huawei phones.
The move from Google will have a minimal impact in the Chinese market as most of Google’s mobile apps are banned in China. But for customers outside of China, the latest stance from Google will have a significant impact to Huawei’s brand appeal.
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