Huawei or the highway: The P- and Mate brands may be sold off


What do you do if you’re in the crate with a monstrous fighter, donning iron fists, and they keep beating you to your knees? Huawei’s bore the brunt of US bureaucracy, succumbing to numerous sanctions that may force them to sell off two of its most valuable smartphone brands, according to new reports. 

The past two years of continuous sanctions against Huawei from the US has been a brutal sight. It lost access to Google’s mobile services after being placed on the US Entity List, barring US companies from trading with Huawei. Since, sanctions have accumulated with the latest being that the company can’t use its preferred semiconductor manufacturer to produce its high-powered Kirin chips. 

Huawei’s taking knocks

According to Reuters, two insiders (who chose to remain anonymous) have divulged that the Chinese telecoms company is in talks to sell its P-series and Mate-series smartphones. It’s not especially unexpected, seeing as Huawei sold off its budget brand Honor late last year in a bid to try and ‘save’ it. Honor recently announced its first non-Huawei handset, and they’re doing fine. 

“The talks between the world’s largest telecommunications equipment maker and a consortium led by Shanghai government-backed investment firms have been going on for months, the people said, declining to be identified as the discussions were confidential,” Reuters reports. 

Talks to sell the two brands initiated in September last year, according to the sources. This will line up plans to sell with the announcement of its Mate 40 handsets

It’s an interesting turn of events, and even though none of these reports are official, it’s clear that the company has taken a few knocks and may have to start finding realistic solutions. Selling off two of its most popular smartphone brands could indicate its shift to focus on network equipment. But as we said — nothing’s confirmed quite yet. 

Huawei sent Stuff a comment, which reads: “Huawei has learned there are unsubstantiated rumours circulating regarding the possible sale of our flagship smartphone brands. There is no merit to these rumours whatsoever, Huawei has no such plans. We remain fully committed to our smartphone business, and will continue to deliver world-leading products and experiences for consumers around the world.”

Both parties (Huawei and the Shanghai investment firms) have denied all rumours about a potential sale. But Reuters makes it clear that “… talks might not conclude successfully, according to the two sources, as the company is still trying to manufacture at home its in-house designed high-end Kirin chips which power its smartphones.”


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Digital Editor at Stuff. Nevermind the fancy title, I like writing about things that are cool. Like games, gadgets and sometimes even software. Depending on how cool it is.

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