Best Buy plans to sever Huawei ties amid U.S. security concerns

Best Buy plans to sever Huawei ties amid U.S. security concerns

What inquiries into this subject do tend to find is that USA networking companies like Cisco, terrified by the added competition from Chinese network vendors, are really effective at scaremongering gullible and non-tech savvy lawmakers into supporting a protectionist stance against Huawei.

"Best Buy, the nation's largest electronics retailer, has ceased ordering new smartphones from Huawei and will stop selling its products over the next few weeks, according to a person familiar with the situation".

The decision by Best Buy to cut ties with Huawei also affects Huawei budget brand Honor, according to Bloomberg. Huawei seems chose to develop a mobile phone that will be capable of running blockchain-based applications.

Huawei continues to insist that it poses no threat to U.S. national security and isn't a spying backdoor for China. Verizon Wireless followed in the same footsteps days later, as the company changed its mind in carrying the devices.

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A few years back, you might recall that there was a period of enormous government and media hyperventilation over allegations that Chinese hardware vendor Huawei spied on an American consumers. The government is concerned that Huawei might use its devices to spy for China. The report questioned possible security concerns regarding both Huawei and ZTE. Although, the report did not mention smartphones and there wasn't enough evidence to back these allegations.

"Our products and solutions are used by major carriers, Fortune 500 companies and hundreds of millions of consumers in more than 170 countries around the world", a Huawei spokesman said. AT&T was just hours away from announcing one such deal at CES earlier this year, when it suddenly announced it would be scrapping the deal. However, the carrier reportedly flaked by the political pressure. But now, the word is that Best Buy could be slipping away, big time. Even so, the move certainly lands a devastating blow against the company. A government program created to subsidize affordable cellphone plans for low-income customers, along with broadband internet access in rural locations, it's an $8bn pot that is funded by mandatory fees baked into every phone bill.

That said it truly is unfortunate that Huawei has come up against so many hurdles recently in its attempts to enter the US market.