The Chinese phone company may have to break up two smartphone lines that have been attached to its brand for many years, P and Mate.
Huawei is in talks to sell two of its high-end smartphones, P and Mate. This information is fine Reuters disclosed, citing sources who are “directly related” to the deal. This could be Huawei’s move to leave the high-end smartphone segment.
The sources said the talks between Huawei and an investment coalition with the participation of the Shanghai government that has been running for months now. Huawei has considered reselling the smartphone segment since September 2020.
The Mate40 Pro could be the last Mate smartphone to be associated with the Huawei brand. Photo: GSM Arena.
According to the data of IDC, the total sales of Huawei’s Mate and P series smartphones over a one-year period up to the third quarter of 2020 are 39.7 billion USD.
However, Huawei has yet to come to a final decision, as it still wants to know if it has a chance to return to the high-end chip segment with the Kirin brand.
Reply ReutersHuawei’s representative denied the above information. The Shanghai city government said it had not received any information and declined to comment further.
Reuters The statement that Huawei wants to sell high-end smartphones shows that the company does not expect Mr. Biden’s new administration to change its attitude towards it.
Previously, Huawei sold the smartphone brand Honor to another investment alliance, with the participation of the Shenzhen city government. The sale of the P and Mate smartphones could also happen in a similar way. Huawei may also send people to join new owners of the P and Mate phones.
The value of Huawei’s Honor sale, according to many sources, is about more 15 billion USD. After no longer belonging to Huawei, Honor was involved in the chip supply chain and using Google services on the Android operating system.
Being cut off the supply chain with TSMC prevented Huawei from making Kirin chips. Photo: Nikkei.
Since May 2019, Huawei has been included in the US Commerce Department’s entity list, leaving the company cut off from the global supply chain. Despite working back with many partners, Huawei is no longer able to cooperate with TSMC, the world’s largest chip processing company. As a result, they do not have a partner to manufacture the chips that Kirin designed themselves.
Analysts believe that the source of Kirin chips produced by TSMC for Huawei earlier will be exhausted this year.
Huawei also has no access to Google services since 2019. That leaves its smartphones without the Play Store and basic services like other Android smartphones.
P and Mate are Huawei’s two most high-end smartphones, positioned to compete with Apple’s iPhone models, Samsung’s Galaxy S and Note or Oppo’s Find series.
According to the data of CounterpointThese two smartphones contribute up to 40% of Huawei’s revenue in the third quarter of 2020. However, the latest smartphones P40 and Mate40 both have low sales, partly because there are not enough components.
“We expect P and Mate line sales to continue to decline in the first quarter of 2021,” said Flora Tang, an analyst at Counterpoint identify.
According to the Zing / Reuters
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