Huawei following Honor can sell flagship Mate and P lines

It seems that the claims of the Chinese company Huawei that the US sanctions are only making it stronger are only partly true. On the one hand, the manufacturer began to develop its own ecosystem, led by Harmony OS. On the other hand, the Chinese giant is unable to solve the problem with the lack of hardware.

At the beginning of the past, Huawei became the largest smartphone manufacturer in the world for the first time in its history. But then things began to deteriorate rapidly. The United States has tightened sanctions against the Chinese company, stepping up pressure on its partners who have partnered with Huawei. As a result, TSMC had to abandon the production of Kirin single-chip systems in its factories. The Chinese company does not have its own facilities for the production of mobile processors

At the end of last year, Huawei decided to withdraw Honor from US sanctions. The brand was sold for about $ 15 billion to a Chinese consortium of several dozen companies led by Digital China. Reuters was the first to report this. Now it is writesthat Huawei is considering selling individual flagship lines. We’re talking about Huawei P and Mate.

Both series can be sold to a consortium funded by the Shanghai government. Negotiations on this have been going on for several months, but so far the parties have not been able to agree. At the same time, Huawei still hopes that it can find hardware suppliers in China and will continue to produce smartphones itself.

Huawei does not believe new US President Joe Biden will lift the Trump administration’s sanctions. In this regard, the company said that SMIC will be engaged in mass production of mobile processors, which produces 14-nanometer single-chip Kirin 710A systems. But SMIC itself is experiencing problems after being included in the US Entity List.

Recall that unlike Xiaomi, which receives the main profit from the sale of state employees, Huawei also earns a lot on flagship smartphones. For example, starting from the third quarter of 2019, the manufacturer received almost $ 40 million from the sale of Huawei P and Mate models in 12 months. At the same time, in the third quarter of last year, the flagships of the two series took 40% in the sales structure.

In conclusion, we add that Honor, after taking over the ownership of the consortium, was able to resume cooperation with Qualcomm and will release smartphones based on Snapdragon processors. Also, on the Honor model, Google services will return in the spring. However, it is unclear whether the flagships Huawei P and Mate will be able to follow the same path, given that the buyer will be a consortium funded by the Shanghai government.

Updated:
Huawei has become aware of the existence of unfounded rumors about the possible sale of flagship brands of HUAWEI smartphones. The company has no such plans, and these rumors have no basis. We remain fully supportive of smartphone manufacturing and will continue to provide innovative products to consumers around the world.