Huawei’s new plan may help it circumvent U.S. sanctions

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Chinese smartphone maker Huawei, which has been hit hard by US-imposed sanctions, is reportedly working on a new plan that could potentially help circumvent those restrictions. bloomberg Report. The plan involves the company licensing smartphone designs to some of its existing partners, who will then source parts and technology from entities Huawei itself has been barred from dealing with.

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Companies with which Huawei intends to work include a little-known firm called Xnova and another company called TD Tech Ltd. Interestingly, Xnova is a subsidiary of China National Postal and Telecommunications Appliances Company (PTAC), a large state-owned company in China. , which already sells Huawei’s existing Nova series devices on its e-commerce platform. Both these companies aim to license smartphone designs from Huawei, but are likely to sell these devices under their own brand names.

Ongoing sanctions – since May 2019 – prevent Huawei from effectively dealing with companies such as Taiwan Semiconductor Manufacturing Company (TSMC), Google and Qualcomm. As a result, Huawei is unable to continue working on its HiSilicon chipset, use Google Play Services on its Android phones, and use Qualcomm processors or 5G chips on its smartphones.

The rear panel of the Huawei P50.
Huawei P50 was one of the few smartphones from Huawei launched in 2021.
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Huawei’s move could be its last attempt to revive its smartphone business, which has been decimated by sanctions. Huawei was dropped from the list of the world’s top smartphone brands over a two-year period, while its consumer business has seen sales decline for several straight quarters.

According to people familiar with the matter, the move is a result of Huawei’s success that was seen in 2020 with the sale of its sub-brand Honor. Soon after the sale, Honor was able to re-establish relationships with suppliers such as Qualcomm and Google. As a result, it is now slowly making its way up the ranks and continues to launch new handsets at regular intervals.

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The report says that if talks with these partners are successful, Huawei aims to sell 30 million smartphones in 2022.




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