QCOM QUALCOMM Inc

By WSJ City 

Google is halting some services for smartphones made by Huawei, according to people familiar with the matter, in a sign the US decision to deny the Chinese tech giant access to US technology will bite into its booming consumer-device business.

KEY FACTS:

--- Existing phones are expected to keep functioning largely as usual, but users could lose some functions.

--- Huawei relies on Google's Android operating system to run its devices.

--- It recently surpassed Apple as the world's No. 2 supplier of smartphones, behind Samsung.

--- San Diego-based Qualcomm suspended shipments to Huawei of its chips and told its employees not to communicate with the Huawei side, according to a person familiar with the matter.

--- Qualcomm chipsets are used in certain Huawei smartphone models.

Why This Matters

Last week the US announced it was adding Huawei to its "Entity List" on national-security grounds, requiring companies that export US technology to the Chinese company to apply for a license. This could cut off Huawei from a range of crucial American suppliers.

Huawei, the world's biggest maker of telecommunications gear, draws upon suppliers from around the world, but it relies on American companies to supply certain components.

What The Companies Said

Huawei said Saturday the impact on smartphone production would be limited even if Huawei cannot import chips. A spokesman didn't immediately respond to a request for comment on the suspensions by Google and Qualcomm.A Google spokesman said the company is "complying with the order and reviewing the implications."

A fuller story is available on WSJ.com

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(END) Dow Jones Newswires

May 20, 2019 07:10 ET (11:10 GMT)

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