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.
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