Bloomberg: Huawei phones enter the market with other brands to circumvent sanctions

News unit EMGblog.com: It was during Trump’s presidency that sanctions were imposed. The United States v. Huawei caused a significant drop in Huawei’s smartphone business while slowing down the Chinese company’s momentum. After the end of the Trump era, it was thought that the new administration would end these sanctions, but Signing of a new law by Biden shows that these sanctions are not only not canceled, but apparently more severe than before. will continue In this way, for the time being, Huawei will have no other way to survive in the field of smartphone production than to bypass the sanctions. According to many experts, handover of the Honor brand was also done in line with this policy. Of course, Huawei has also used various other ways. designs-to-other-companies-bloomberg-reports_01.png”/>

According to the news on Sunday, November 14, 2021 (23 Aban 1400) from Bloomberg Published, Huawei apparently to circumvent sanctions The US is looking to license its smartphone designs to some other companies. In this way, due to the non-sanction of these companies, the parts needed to make Huawei phones will be easily provided. Of course, the not so pleasant point is that these phones – which are actually made by Huawei – will enter the market under other brands (and not with the Huawei name).

According to the sources of knowledge, who did not want to be named, Xnova – which is one of the production units of the Chinese company PTAC – is going to buy the design license of a number of Huawei phones and finally sell them under its own brand. deliver It is interesting to know that Xnova had already sold Nova series smartphones on its website. TD Tech is the name of another Chinese company that is going to sell some of the Huawei phones under this name. Of course, according to Bloomberg, Huawei’s negotiations with these two companies are still ongoing, it is unlikely that these partnerships will change in the future.

As a result of the US sanctions, in addition to Huawei’s access to the chips of the Taiwanese company TSMC, Google applications and Qualcomm’s 5th generation modems could not be used in Huawei have a place. Therefore, Huawei’s decision to license the design of its phones to other companies can be the company’s best chance to save its smartphone business. It should be noted that since the start of the Trump administration’s sanctions until now, the company’s consumer goods business (including smartphones, tablets, wearables, etc.) has witnessed a drop in sales for 4 consecutive seasons.

About a year ago, Huawei was forced to release Honor from Under sanctions, it has sold its famous sub-brand to a newly formed Chinese consortium of more than 30 companies – including China Telecom – hand over. According to George Zhao, CEO of Honor, the newly independent company can now buy the parts it needs from suppliers – including Qualcomm. Apparently, the success of the Honor brand after the handover has prompted Huawei to look for new partners for the survival of its consumer products business.

Many Huawei smartphones using It was produced from the chips of one of the subsidiaries of this company, “High Silicon”. But after the imposition of sanctions and the termination of Huawei’s relationship with TSMC, Hi-Silicon stopped making the desired chips. For this reason, according to Bloomberg, to solve this problem, Huawei engineers are re-designing the circuits of these phones so that they can be compatible with Qualcomm or MediaTek chipsets. According to one of the knowledgeable sources, Huawei hopes that through these partnerships, it will be able to increase the supply of its smartphones (both those directly launched under the Huawei name and those sold under the brand of new partners) to more than 30 million by next year. deliver the device

It should be noted that, considering that the above contents have not yet been confirmed by Huawei and its partners, we cannot be 100% sure of their accuracy. So far, Huawei has declined to comment, and PTAC and TD Tech have not responded to emails or phone calls regarding the matter. Not bad to know, PTAC is part of China General Technology Group Holding. This large holding is one of the most important manufacturers and importers of industrial machinery in China and is directly controlled by the Chinese central government. TD Tech was also founded in 2005 using the assets of companies such as Siemens (although the German multinational Siemens claims that it does not currently own any shares in TD Tech).

Huawei is looking for a new source of money to make up for the revenue gap created (as a result of the decline in its consumer products business). Huawei’s consumer division achieved a revenue of about 483 billion Chinese yuan last year, which is roughly equivalent to 75.6 billion US dollars at the current exchange rate. This volume of income is almost equal to the annual income of IBM. According to Bloomberg experts, it is unlikely that these arrangements can bring significant profit to Huawei. But these same experts confirm that these collaborations could play an important role in helping to maintain Huawei’s smartphone development capabilities.

No sign of easing sanctions against Huawei under the Biden administration. It is not visible. Of course, it seems that America’s positions have softened to some extent against Huawei, because recently Meng Wanzhou, the daughter of Huawei’s CEO (who also holds the position of the company’s chief financial officer), succeeded in requesting America’s extradition by signing an agreement. disable According to the US request to extradite Meng Wanzhou, he had to live under house arrest in Canada for 2 years. It should be noted that Huawei’s executives, including Ren Zhengfei, the company’s CEO, are determined to continue producing smartphones.