Is Huawei planning to sell its flagship smartphone business?

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After disposing Honor, Huawei is now reported to be in talks to sell off its smartphone business. The Chinese tech firm has issued a statement on the matter.

According to the report, the Chinese tech giant has been negotiating with a Shanghai government-backed investment firm for months and Huawei has been exploring the possibility of a sale since September 2020. Quoting IDC’s report, Huawei has shipped Mate and P series devices worth an estimated USD 39.7 billion between Q3 2019 and Q3 2020.

The Huawei Mate 40 series was launched in October 2020 and it is said to be the last flagship smartphone to be powered by a flagship Kirin processor. The 5nm Kirin 9000 is the final in-house chip to be produced with TSMC after the US govt hadfrom its vital supplier. Huawei had also lose access to Google Mobile Services since mid-2019 and it had shipped new devices with Huawei Mobile Services pre-installed.

It is also said that Huawei has yet to make a final decision on the sale and the company is still trying to manufacture new high-end chips in-house. Reuter’s sources also said that the sale is also an indication that Huawei is not optimistic that the US government will change its stance on the Huawei under the new Biden administration.Shortly after the Reuter’s report was published, Huawei has issued asaying that the claims were unsubstantiated.

 

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