Sold’Honour’ and sold’P’ to’Mate’ flagship brands
Huawei’s “continues to maintain the smartphone business” denial of concern increases
Huawei [사진=로이터· 연합뉴스]
“I have no plans to sell the smartphone business branch.”
Huawei, a Chinese communication equipment company, officially denied the sale of the smartphone business, which was reported by foreign media recently. However, the industry predicts that Huawei, which is having difficulty procuring semiconductors due to US sanctions, may suffer from such rumors for a while.
Reuters “Huawei sells high-end brands’P’ and’Mate’ series”
According to Pinwan, a commentary by China’s IT media, Sofu Technology, on the 26th, Huawei said, “We will continue to strive for a leading premium smartphone brand in the global market.” “We will continue to provide superior product experiences and services to consumers. He strongly argued that the idea of the sale was not true.
Earlier the day before, Reuters cited multiple sources and reported that “Huawei is discussing a plan to sell premium smartphone brands’P’ series and’Mate’ series to a consortium led by a Shanghai provincial government investment company.” The P and Mate brands are high-end smartphones that compete with Apple’s iPhone and Xiaomi’s Mi in China.
Reuters added, “Huawei began reviewing such discussions in September last year, and discussions between the two sides have been ongoing for several months.”
This rumor was fueled by the fact that Huawei sold its mid-to-low-end smartphone brand’Honor’ in November last year to a consortium composed of the Shenzhen city government and local smartphone distributors.
Accordingly, in the market, it was speculated that Huawei would quit the smartphone business after selling up to high-end smartphone brands following Honor and immerse himself in businesses such as communication equipment and industrial Internet.
Difficulty in procuring core semiconductors due to US sanctions…
Huawei is struggling to secure semiconductors due to US government sanctions. In order to manufacture high-end smartphones, supply of high-performance semiconductors is essential, but US sanctions will disrupt the supply, which inevitably interferes with product production. What’s more, even after Joe Biden’s US administration came into force, it doesn’t seem easy to lift sanctions during the former administration of Donald Trump, which could lower reliance on the smartphone business.
Although Huawei has completely denied such rumors and speculation, there are still voices of concern about the Huawei smartphone business in the industry. Pin-wan said, “It is too early to know what the fate of the P series and Mate series will be,” citing the report of Teng Xun Mang, a Huawei official on the 21st, mentioning plans to release follow-up models such as the P50 and Mate 50.
According to a report, a Huawei official said, “Huawei’s P50 and Mate 50 are equipped with a significant portion of Huawei’s chip inventory. The key to the future Huawei smartphone business strategy is how much life can be extended through limited chips.” . This means that Huawei’s semiconductor stocks are not left, Finwan interpreted.
“Huawei’s smartphone business is relatively low in vitality,” said Pinwan. “It will be able to lose its advantage in market competition.”
Recent market research firm Trend Force also predicted that Huawei will only ship 45 million smartphones this year, pushing it to the 7th place in the global total smartphone market.
©’Five-language global economic newspaper’ Ajou Economy. Prohibition of unauthorized reproduction and redistribution