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How HUAWEI plans to work around the US ban

HUAWEI's plotting a smart move to get back in the United States market. But, is it too late?
By Sanuj Bhatia November 16, 2021, 3:15 am
2019 Annual Report

Ever since HUAWEI was banned in the United States, the company has seen a downfall. The revenue crippled, sales slowed down, and the reputation slumped. The company has tried to get back in the States through various loopholes. However, it's failed. But, according to a new report from Bloomberg, HUAWEI's reportedly planning a smart move to get back in the US market.

According to the report, HUAWEI is negotiating with third-party companies to license its handset designs "as a way to gain access to critical components." The report says that HUAWEI is considering selling its licensed designs to state-owned China Postal and Telecommunications Appliances Co., or PTAC. This unit will then "seek to buy" parts "barred under the Trump-era blacklisting."

Another Chinese telecom equipment maker company, called TD Tech Ltd, will sell phones featuring HUAWEI's design under the name of its own brand, according to the report. Xnova is already a brand that sells HUAWEI's "Nova phones" on its e-commerce site. Earlier, HUAWEI also made its sub-brand HONOR independent, which can now source chips and other components from companies such as Qualcomm. The company is planning to do the same with HUAWEI now.

Negotiations are reportedly still in the "ongoing" stage, according to Bloomberg. If the licensing deal goes through, the company expects to ship more than 30 million units of HUAWEI smartphones next year. But, is it too late?

Via: Bloomberg, Android Authority

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