Samsung stock trading up after Huawei’s recent troubles

Huawei’s recent troubles in the US has caused stocks in South Korean mobile phone maker Samsung to spike, a day after Google’s somewhat controversial compliance decision.

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During an afternoon trade in Seoul, its shares rocketed to 4.3% before closing the day’s trading at a slightly lower 2.74%.

This comes after US internet company Google announced that it’s cutting ties with Huawei in its compliance with an executive order issued by President Donald Trump.

Google’s compliance will cause Huawei devices to lose partial access to proprietary services such as Gmail, Google Maps apps and YouTube.

The ban will have a minimal impact on the Chinese market as most of Google’s mobile apps are already banned in China – but how it affects the rest of the world is still uncertain.

However, according to a wireless industry consultant Chetan Sharma, there’s little hope for the brand outside of China markets.

“It’s a very mature market so trying to displace, say, an Android app store is almost impossible. You can do that in China, but not in Europe,”

Chetan Sharma

Attesting to this is Samsung Securities analyst MS Hwang who posed a question to Bloomberg News: “If you are in Europe or China and couldn’t use Google map or any Android services with a Huawei smartphone, would you buy one? Wouldn’t you buy a Samsung smartphone instead?”