The largest global IT companies
Today the IT market is rapidly changing; the leading positions are traditionally occupied by the American, Japanese and South Korean companies. China has joined the fray over leadership in one of the most high-tech spheres of human activity. The examples are such companies as Huawei or Alibaba (see table 1).
The paradox of the current moment is that non-market methods are used by the states with market-based economy to deter competitors – express prohibition of cooperation between multinational companies.
Thus, the U.S. Department of Commerce announced that Huawei Technologies and its 70 branches are included in Entity List on May 15, 2019. As a result, Huawei will not be able to buy spare parts and components from American manufacturers without approval of the US government.
Then Google stated that it would no longer supply the Android operating system to Huawei smartphones. The sold smartphones will remain without updates, including the trending Honor. Qualcomm (American manufacturer of chips) and ARM (British manufacturer of processors) are also informed about termination of cooperation with Huawei. Huawei will be able to overcome the negative consequences thanks to its own operating system and chips, the development of which is being successfully carried out.
Huawei produces every fifth smartphone in the world; it is already ahead of Apple and became the second manufacturer after Samsung. Seven years ago, the Chinese company occupied only three percent of the market. The growth of Huawei is a prime example of the Chinese national policy of technological superiority supported by the state.
The company has not only become a successful player in the consumer electronics market, but also become the largest manufacturer of telecommunications equipment. Huawei is aimed to be the flagman company in launching of 5G networks. The main competitors - Nokia and Ericsson are already seriously behind both in terms of equipment cost and market shares in most countries.
Great expectations are placed on 5G due to high speed and energy efficiency. This will allow to create the machine-to-machine communication systems: without 5G networks it is impossible to conduct a mass launch of self-driving vehicles, build smart cities and track a huge amount of data in real-time mode on industrial plants as well as in megalopolises. The 5G network will give the opportunities to manage the virtual objects simultaneously with other people.
The imposed USA restrictions will negatively influence on American IT corporations. The EU countries do not refuse to cooperate with Chinese partners. The market participants are thinking about reducing their dependence on American suppliers. New mobile operating systems and other computer architectures will be developed. In future, the US monopoly in IT industry will decline.
|Position||Company||2018 revenue, billion USD||Headquarters|
|1||Apple Inc.||$265,6||Cupertino, US|
|2||Samsung Electronics||$221,6||Suwon, South Korea|
|4||Hon Hai Precision/Foxconn||$150,3||New Taipei City, Taiwan|
|5||Alphabet Inc. (owner of Google)||$136,8||Mountain View, US|
|7||Nippon Telegraph and Telephone (NTT)||$109,3||Tokyo, Japan|
|9||Dell Technologies||$90,6||Round Rock, TX, US|
|12||IBM||$79,6||Armonk, NY, US|
|14||Intel||$70,8||Santa Clara, CA, US|
|16||HP Inc.||$58,5||Palo Alto, CA, US|
|18||$55,8||Menlo Park, U.S.|
|19||LG Electronics||$51,8||Seoul, South Korea|