China’s top smartphone-making export and the global mobile industry’s fast-growing number three vendor is seeing its US expansion ambitions completely crushed, despite negotiations with the nation’s two leading carriers reaching the final stages.
After AT&T was reportedly pressured into abandoning Mate 10 (Pro) support plans at the very last minute, Verizon seems to be also backing away from any such discussions. “People familiar with the matter” are citing similar “pressure from the U.S. government” as the main reason why talks can’t go any further.
While the Mate 10 Pro is mentioned by name in Bloomberg’s latest report as a device you’re probably never going to see released through Verizon, Big Red may have dropped all plans to “sell phones by Chinese manufacturer Huawei Technologies Co.”
That means there’s virtually no chance for a change of heart from either wireless service providers or lawmakers as far as any of Huawei’s next-gen phones are concerned. The unofficial embargo could also extend to network equipment, another big area of interest and key profit driver for the Chinese tech giant.
The Trump administration doesn’t want a company long suspected of cyber-spying involved in any capacity in America’s 5G rollout, even if the idea of a nationalized high-speed network has been quickly rejected by high-profile members of the President’s own party.
Of course, no one can ban Huawei from selling its phones unlocked through channels like Best Buy and Amazon, but that’s clearly not the same thing as earning AT&T and Verizon’s direct approval. The latter was particularly important since unlocked phones only work with GSM operators.