Huawei could finally sell its high-end smartphone business

 

 

 

 

 Unable to produce enough Kirin chips for its next high-end smartphones, Huawei is wondering about the future of its two premium brands: P and Mate. A sale of these would be considered.

Huawei Technologies Co Ltd has started preliminary negotiations for a future sale of its premium smartphone business. According to Reuters, which quotes two sources directly involved in the case, the manufacturer is seeking to sell its P and Mate brands.

 

 

 A sale at the Honor

Huawei would have started to consider such a sale in September 2020. Discussions have been initiated for several months with a consortium of investment companies, supported by the Shanghai government. A process that resembles that used for the sale of the now ex-subsidiary Honor.

According to the two Reuters sources, the talks are not yet certain to be concluded. Huawei is seriously exploring this option, but still hopes to be able to retain and operate its two flagship brands.

Despite the US sanctions hitting it, preventing it from supplying itself with components and using certain technologies, Huawei is trying to manufacture its Kirin chips to equip its smartphones.

 

 

Huawei's production capacity collapses

But, in 2021, all analysts expect a drastic drop in sales of Huawei smartphones. Not because of a drop in demand, but because the manufacturer is not able to meet this demand in terms of production.

The report does not indicate at what price the P and Mate brands are valued. In one year (between the third quarter of 2019 and the third quarter of 2020), Huawei would have generated 39.7 billion dollars in revenue from the sale of the P and Mate smartphones, despite the absence of Google services.

For now, Huawei denies any sales operation for its P and Mate brands, while the Shanghai government says it is not aware of anything. Common statements when negotiations are in their infancy.