The Technology of Huawei and Lenovo Companies

The top five countries that the United States exported to in 2018 were Canada, Mexico, China, Japan, and the United Kingdom (From largest to least exporter in volume). The volume that they exported were as follows: 298.7 billion (Canada), 265 billion (Mexico), 120.3 billion (China), 75 billion (Japan), and 66.2 billion (United Kingdom). The top five countries that the United States Imported from in 2018 were China, Mexico, Canada, Japan, and Germany (From largest to least importer in volume). The volume that they imported were as follows: 539.5 billion (China), 346.

5 billion (Mexico), 318.5 (Canada), 142.6 billion (Japan), and 125.9 billion (Germany).

Huawei is a Chinese based company that specializes in the technology sector where they provide telecommunications devices and sell consumer electronic products such as smartphones (Huawei). In 2019, Huawei ranked number one in data center interconnect market share outside of North America (Huawei). They have calculated the market share of all DCI equipment across all regions except North America to be 32.6%, which makes their product the largest in the market when compared to other DCI manufacturers (Huawei).

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DCI (direct common-rail injection) is essentially a technological network that’s core purpose is to connect two or more data centers together to enhance a better experience between businesses (DCI Wiki). In 2019, Huawei showcased the Huawei OptiXtrans DC908, which is the industry’s first intelligent product that will help the challenges of high DCI costs and management issues of multiple data centers for a variety of different industries worldwide (Huawei). The data provided by Global Data explains the importance of this new creation since they expect the worldwide cloud ecosystem to grow at a Compound Annual Growth Rate of 25.

3%, reaching $720 billion by the year 2022 (Huawei Link). Huawei reports their DCI products are ranked number one globally in the government and carrier market segments for 2019 (Huawei).

Lenovo is a Chinese technology company that works on a variety of different technological territories where they design, construct, and sell home computers, cellular phones, televisions, and servers (Investopedia). Lenovo holds the title for being the largest PC vendor where they claim to have 24.7% market share in 2019, beating other well-known technology companies such as Dell, HP Inc., and Apple (Investopedia). This year, Lenovo announced a partnership with SentinelOne which would lead to increasing their security strength for consumers (Lenovo). They acquired a package where consumers can have device, data, identity, and online protection with the two company’s strategic partnership to minimize a data breach that averages $4 million per incident (Lenovo). This new exciting information does not have many statistical information since it has just begun; however, SentinelOne believes this strategic partnership will give their enterprise consumers the opportunity to take advantage of the combined powers to transport industry-leading protection that brings AI to it’s fullest potential (Lenovo).

Halliburton was founded in 1919 and is one of the world’s largest oil field service companies where they operate worldwide (Wiki). They have around 50,000 employees where they represent 140 ethnic groups in over 80 countries (Halliburton). They serve huge independent and national natural gas and oil companies throughout the world and operate two segments: The completion and production division and the drilling and evaluation division (Halliburton). Halliburton announced on February 2020 that Pertamina, the largest Indonesian oil and gas company, deployed all their technical applications on the iEnergry cloud (Halliburton). This cloud is a hybrid mechanism that is offered from Landmark, a business line of Halliburton, which manages the operators’ exploration and operation applications (Halliburton). This multi-year contract will also include AI (artificial intelligence), machinery education and data software’s to reduce/solve Indonesia’s oil and gas production (Halliburton). The overall goal of Halliburton’s new software is to help reduce company infrastructure expenses and improve gas/oil companies managing their units and subsidiaries (Halliburton). This is a new contract that does not have much information on Indonesia’s impact; however, this AI software can be a game changer for the industry for a variety of other oil/gas companies that Halliburton already creates business or possibly new partners in the near future.

On May 16, 2019, Huawei was added into the commerce entity list, which restricts them from having any business interactions with US companies without the approval from the government (The Verge). Huawei lost its licensing agreement with Google which is an extreme situation since it will restrict Google play services and access to Google’s mobile app store for all new Huawei Android cellular devices (The Verge). This will increase Huawei’s volatility exposure in both the United States (Dollar) and China (Yuan) while giving other information and communication technology (ICT) infrastructure companies an advantage. Huawei can have the most advanced cellular device in the market; however, consumers will use alternative devices since consumers would not be pleased purchasing a phone without an app ecosystem. This entity list is concerning for Huawei where all it’s rivals would get early access to the latest androids while Huawei would get it later, leading to potential loss and increasing volatility exposure in almost every foreign currency affiliated with Huawei products. This would also create concerns for Google that could potentially increase their own volatility exposure in a variety of foreign currencies since they rely on Huawei’s fast pace innovation mindset (The Verge). This action from the US could lead to further issues for the economy, especially since it heavily relates to the world’s two leading economies.

Lenovo has been going through some tough situations relating to the COVID-19 pandemic; furthermore, Lenovo’s biggest factory is located where the pandemic began, in the central city of Wuhan (Gadgets). This issue has caused the world’s largest PC maker to face supply chain trouble where they faced a short-term volatility in China (Yuan). They currently have a vast majority of their factories reopened in China with operational limitations (Gadget). They have complications that could potentially increase volatility for other foreign currencies that help supply and issue logistic services but are strictly limited due to the worldwide impact of business operations (Gadget). Lenovo showcased a short-term volatility since they have eased their multiple troubles where the US President threatened to issue tariffs in December though he later decided not to implement. This tariff could have increased volatility exposure for the Chinese currency (Yuan) and the US currency (Dollar) since laptop computers were among $156 billion worth of goods from China that Washington had attempted to tariff in December (Gadget). This seems to be a short-term volatility since Lenovo’s profit rose 11 percent in December due to the high demand of PCs and smart devices (Gadget).

Halliburton recently had some issues with Venezuela where there have been new restrictions that would effectively hold down production in their country by December (Yahoo). The reason for this halt is due to the fact the Trump administration is ratcheting up pressure on Maduro’s regime as Venezuela stumbles from the COVID-19 pandemic. Another big factor is the oil pricing being the lowest it has ever been in this generation (yahoo). This is recent news with an expected high volatility in Venezuela (Bolivar soberano currency) for Halliburton along with other major oilfield service provider companies who are located in the area including Schlumberger (yahoo). The Treasury Department announced the news that it will no longer let the five major U.S. companies in Venezuela buy and sell crude oil or transport them into other countries for sale, Halliburton being one of them (yahoo). This could potentially effect Halliburton’s foreign currency volatility in other countries if they are not able to send out their oil with no specific date of going back to production (yahoo).