Huawei may sell cell phone division of the P

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Chinese manufacturer Huawei may sell the cellphone division of the brand responsible for the current premium smartphone families “P” and “Mate”. The information was released on Monday (25) by the Reuters news agency.

Talks with a consortium led by investment funds linked to the Shanghai government have been ongoing for months. The report says it received information from two different sources that would be involved in the matter. Currently, the company is the second largest seller of cell phones in the world, behind only Samsung and having briefly passed the rival last year.

By means of an official note, the company denied the information. “Huawei has learned that there are unsubstantiated rumors circulating about a possible sale of our premium smartphone brands. There is no merit in these rumors. Huawei does not have such a plan,” said a spokesman. The Shanghai government declined to comment.

Market complications

The main reason for a possible sale of smartphone families is the trade war with the United States, which is still ongoing and has no date to end. In addition to banning the use of the Android ecosystem, which is almost two years old, the company stopped trading with several companies based in the country or with businesses established in the country. The US government accuses the espionage company at the behest of the Chinese government.

The main consequence was the end of the alliance with TSMC, one of the largest manufacturers of processors for mobile devices in the world. Samsung should also not be involved with the Chinese brand, while ARM should continue negotiations. Even so, the company must assess whether it can manufacture a sufficient stock of Kirin chips for smartphones internally. Models launched in 2020, such as the Huawei P40 Pro and Huawei Mate 40, were highly praised in terms of design and photography, despite the “lack” of Android.

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In November 2020, Huawei sold the independent Honor sub-brand to a Chinese consortium for similar reasons – and also initially denied speculation. The manufacturer should increasingly focus on telecommunications infrastructure and platforms such as the Harmony OS operating system.

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