Huawei in Early Stage of Considering Sale of Smartphone 'P·Mate' Models

[Image source=Yonhap News]

[Asia Economy Reporter Seulgina Cho] Reports have emerged that Huawei, the Chinese company targeted by U.S. government sanctions, is in the early stages of considering the sale of its smartphone brands such as Mate and the P series. Following the sale of its mid-range smartphone brand Honor, there is speculation that Huawei may be stepping back from the premium smartphone market as well.

On the 25th (local time), overseas IT media outlets cited major foreign news sources to report this. According to multiple sources, Huawei has been negotiating for several months with a consortium led by an investment company supported by the Shanghai government. One source stated, "Huawei began an internal investigation into the possibility of selling the brand starting in September last year."

However, no final decision regarding the sale has been made yet. Another source hinted that since Huawei is striving to manufacture its self-designed high-end Kirin chips, the sale negotiations may not conclude successfully.

The reason Huawei is considering selling even its flagship smartphone brands is interpreted as a judgment that the Biden administration’s U.S. sanctions policy against Huawei will not change. Sources evaluated that the sale of the Mate and P series essentially indicates Huawei’s move to wind down its premium smartphone manufacturing business.

According to market research firm IDC, sales of the Mate and P series are estimated at approximately $39.7 billion from Q3 2019 to Q3 2020. The latest models released include the P40 Pro and Mate 40.

9to5Google reported, "(The Mate and P series) have been among the most popular smartphones worldwide for years," adding, "Everyone knows Huawei is in a difficult situation after U.S. sanctions and being cut off from the Google Android system. With no solution in sight, they have begun negotiations for a sale."

The Mate 40 is also Huawei’s last phone equipped with the Kirin processor. Taiwan’s TSMC decided to stop supplying chips to Huawei due to U.S. sanctions.

Huawei officially denied the reports. A spokesperson said, "There are no such plans," dismissing them as "baseless rumors." However, IT media noted that Huawei had also strongly denied the sale during the Honor brand transaction. Some foreign media mentioned recent rumors about LG Electronics considering exiting the smartphone market, which was confirmed as true a week later.