It seems the US government’s blow has been too heavy for Huawei, more than you would’ve thought. After it was battered to buckle down and sell the Honor sub-brand to Shenzen Zhixin New Information Technology (a domestic consortium of over 30 agents and dealers), now it is said to be in early talks to trade the premium smartphone division too.
Here’s what the Reuters report entails —
According to people close to the matter, the discussion between Huawei and Shanghai-backed investment firms were going on for a while now. As a matter of fact, the brand has been apparently weighing options ever since last September.
All that said, Huawei is yet to take a decision on this. So, the thing might go off. Meanwhile, the company is actively trying to muster up an in-house chip manufacturing foundry (something of a scale big enough to fab its Kirin silicons).
Now, Huawei has squashed this new piece of information as “unsubstantiated rumours” A Huawei spokesperson has revealed, “There is no merit to these rumours whatsoever. Huawei has no such plan”.
Not only that, Shanghai Government itself has negated the rumor saying that it is unaware of the case. So, you better take the scoop with a grain of salt.
Be that as it may, one can’t argue the dire situation the brand is in due to the curbs set by foreign powers (the US in particular). We will see how things will turn out for the company in the coming future. At present, it isn’t rosy though. As per consultancy firm IDC, phone shipments of Mate and P series were worth $39.7 billion (around ₹2,89,460 crores) between Q3 2019 and Q3 2020. While another firm Counterpoint claims, “We expect a continuous decline in sales of P and Mate series smartphones through Q1 2021”.