Among these users, 52% are in China, where Google Play is not available.
Which leaves Google sustaining damage from Europe as well as the Asian (excluding China) region, where revenue comes in from app sales apps Play Store.
Instinet an institutional broker that also serves as an independent equity trading arm of its parent company, Nomura Group, published a report where they estimated that Google generated $7 billion from Play Store sales worldwide, in 2018. Among that $7 billion, Huawei phones contributed $388 million. The largest source of that revenue was from Europe; where Google singlehandedly gathered $190 million just from Play Store sales on Huawei devices in 2018. Huawei smartphone user base in Asia (excluding China) contributed about $137 million in Play Store sales.
Can Google deal with the blow?
However, experts are expecting that, the blow on Google will eventually be softened as smartphone users will switch from Huawei to other brands for a fully functional Android experience. Huawei has already confirmed news about developing their own operating system that can replace Android on its devices, but researchers and experts are very doubtful about the switch from Android to Huawei’s own OS.
Which makes it is highly likely for Huawei to be losing market share in regions like Europe, but it definitely won’t be the end of Huawei who are currently the world’s second-largest smartphone manufacturer after Samsung.
How Much Will Google be losing?
Managing Director at Wedbush Securities, Dan Ives thinks that, Google will be losing close to $150 million to $200 million per year in revenue due to this situation.
According to Nomura Instinet analyst Mark Kelley, Google might lose a staggering $375 million to $425 million in Play Store revenue in the coming years due to Huawei being blacklisted in the U.S market.
Is Google the only company to get affected from the ban?
Apart from Google’s estimated loss, ban on Huawei will bring risks to Apple’s business, Goldman Sachs estimated that there could be a 29% fall in the company’s global profits.
Apple is now being considered to be in the shakiest time in their history, as a high-profile company which sells expensive hardware in China. Political and business analysts are expecting China to hit back at the US by banning iPhone sales within the country, which would hit Apple in an extremely bad manner.
