KDDI, Softbank to Postpone Huawei Smartphone Launch

Tokyo, May 22 (Jiji Press)--Japanese mobile phone carriers KDDI Corp. and Softbank Corp. said Wednesday that they will postpone launching new smartphones made by Chinese telecommunications equipment maker Huawei Technologies Co. Rakuten Mobile Inc., set to start operations as a new carrier in October, made a similar announcement the same day. Meanwhile, NTT Docomo Inc., another Japanese carrier, said it has stopped accepting preorders for a new Huawei smartphone originally slated to be released in summer. The escalating trade war between the United States and China has started affecting Japanese companies and consumers, informed sources said. Both KDDI and Softbank planned to release the new Huawei smartphones later this month. KDDI said it made the decision by examining various factors comprehensively while its investigating is under way on the impact of U.S. sanctions against Huawei. Softbank is trying to make sure whether it can sell the Huawei products without a problem, according to the company. Huawei faces difficulties procuring information technology products and services due to the U.S. sanctions. The U.S. Department of Commerce last week said it added Huawei to a list of companies considered a threat to U.S. national security, prohibiting exports of U.S. high-tech products to the Chinese company. According to overseas media reports, Google LLC, whose Android operating system powers Huawei products, will partially suspend its transactions with the Chinese company in response to the U.S. sanctions. Without Android, it would be difficult to use Google apps and services, such as Gmail and Google Maps. Existing Huawei products will not be affected by the U.S. government action. Japanese electronics retailers including Bic Camera Inc. will continue selling existing products, an industry official said. END