Huawei plans to sell its flagship smartphone business. Reported by Reuters.
Two sources familiar with the situation told the agency that the Chinese corporation is negotiating the sale of part of the business. Huawei is trying to negotiate with a consortium of a number of investment firms close to the Shanghai government, they said. Negotiations have been going on for several months, with Huawei analysts beginning to explore the possibility of selling the top-end smartphone business in September 2020.
It is reported that in case of successful negotiations, the Chinese corporation will get rid of the flagship business – the Mate and P lines – and focus on the production of low-cost smartphones. Shipments of the Mate and P series phones between Q3 2019 and Q3 2020 totaled approximately 39.7 million, according to consultancy IDC.
Representatives of Huawei, who were contacted for comment by journalists, denied the fact of negotiations on the sale. “These rumors are not supported by anything, Huawei does not have such a plan,” the company noted. The Shanghai government replied that they were unaware of the situation and declined to comment.
Insiders said that Huawei may abandon plans to sell the business if it resolves the issue with the supply of processors for its flagships. According to journalists, rumors about the sale of the business indicate that the Chinese corporation no longer believes that the administration of the new US President Joe Biden will lift sanctions from Huawei.
In November 2019, Huawei announced the sale of its subsidiary Honor brand. The new owner is the Shenzhen Zhixin New Information Technology conglomerate, which includes large investment companies supported by the city of Shenzhen. Huawei has been under US sanctions since May 2019.
