• - Bloomberg: Huawei phones are entering the market with other brands to circumvent the sanctions

    Bloomberg: Huawei phones are entering the market with other brands to circumvent the sanctions
    7 Days, 12 Hours ago

    Tags:  Huawei

    It was during Trump's presidency that US sanctions against Huawei slowed down the Chinese company's business, causing a significant slowdown in the Huawei smartphone business. After the end of the Trump era, the new administration was supposed to end the sanctions, but the signing of a new law by Biden shows that the sanctions have not only not been lifted, but will apparently continue to be more severe than before. As such, Huawei currently has no choice but to circumvent sanctions in order to survive in the smartphone industry. According to many experts, the transfer of the Honor brand was done in line with this policy. Of course, Huawei has used a variety of other ways. Bloomberg: Huawei phones are entering the market with Other brands to circumvent the sanctions

    According to a report released by Bloomberg on Sunday, November 14, 2021, Huawei is apparently seeking permission to design its smartphones in order to circumvent US sanctions. Leave it to some other companies. In this way, due to the fact that these companies are not under sanctions, the parts needed to make Huawei handsets will be easily supplied. Of course, the unfortunate thing is that these handsets - which are actually made by Huawei - will enter the market under other brands (and not under the Huawei name). Xnova - one of the manufacturing units of the Chinese company PTAC - is set to buy a design license for a number of Huawei handsets and eventually sell them under its own brand, according to intelligence sources who did not want to be named. To send. It is interesting to know that Xnova has already sold Nova series smartphones on its website. TD Tech is the name of another Chinese company that is going to sell some Huawei phones under this name. However, given that Huawei is still in talks with the two companies, according to Bloomberg, it is unlikely that these partnerships will change in the future.

    As a result of US sanctions, in addition to Huawei's denial of access to the Taiwanese company TSMC chips, Google applications and Qualcomm's fifth-generation modems could not fit on Huawei's devices. Therefore, Huawei's decision to license the design of its phones to other companies could be the best opportunity for the company to save the business of its smartphones. It should be noted that since the beginning of the Trump administration sanctions, the company's consumer goods business (including smartphones, tablets, wearables, etc.) has seen a decline in sales for four consecutive seasons.

    About a year ago, Huawei was forced to cede its famous sub-brand to a newly formed Chinese consortium of more than 30 companies - including China Telecom - to free it from sanctions. According to George Zhao, CEO of Honor, the newly independent company can now buy the parts it needs from suppliers, including Qualcomm. Apparently, the success of the Honor brand after the transfer, led Huawei to look for new partners to continue the business life of its consumer products.

     Bloomberg: Huawei phones are entering the market with other brands to circumvent the sanctions

    Many Huawei smartphones were manufactured using chips from one of the company's subsidiaries, High Silicon. But after sanctions were imposed and Huawei cut ties with TSMC, Hy-Silicon stopped making the chips. That's why, according to Bloomberg, Huawei engineers are redesigning the circuitry of these handsets to match them with Qualcomm or MediaTek chipsets. According to an informed source, Huawei hopes that through these partnerships, it will be able to launch its smartphones (both those that are marketed directly under the Huawei brand and those that are sold under the brand of new partners) to more than 30 million by next year. Deliver the device.

    It should be noted that, given that the above has not yet been confirmed by Huawei and its partners, we can not be 100% sure of their accuracy. So far, Huawei has declined to comment, and PTAC and TD Tech have not responded to emails or phone calls. Not bad to know, PTAC is part of the holding of China General Technology Group. This large holding is one of the most important manufacturers and importers of industrial machinery in China and is directly controlled by the central government of China. TD Tech was also founded in 2005 using the assets of companies such as Siemens (although the German multinational Siemens claims that it currently has no stake in TD Tech).

    Huawei is looking for a new source of monetization to bridge the revenue gap (as a result of the decline in the business of its consumer products). Huawei's consumer sector last year earned about 483 billion Chinese yuan, which at current exchange rates is roughly equivalent to US $ 75.6 billion. This amount of revenue is approximately equal to IBM's annual revenue. According to Bloomberg experts, it is unlikely that these measures will be able to make a significant profit for Huawei. But the same experts acknowledge that these collaborations could play an important role in helping maintain Huawei's smartphone development capabilities.

    There is no sign of easing sanctions against Huawei under the Biden administration. Of course, the US position seems to have softened somewhat against Huawei, as Meng Wanzhou, the daughter of Huawei's CEO (who is also the company's chief financial officer), recently signed an agreement to secure a US request for his extradition. Ineffective. He was forced to live under house arrest in Canada for two years at the request of the United States to extradite Meng Wangzhou. It should be noted that Huawei executives, including CEO Ren Zhengfei, are determined to continue producing smartphones.

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