Huawei intends to license its brand to avoid US restrictions on trade deals with US companies. Bloomberg reported that the company is considering licensing the design of its products, mainly smartphones, to the Chinese government-controlled China Postal and Telecommunications Appliances Co. (PTAC), so that the latter, currently not blocked from the list. black (the entity list), can buy services (such as the Google Android license) and components (such as Qualcomm processors) to bring Huawei smartphones back to the market.
PTAC already sells Nova-branded smartphones, also used by Huawei, to corporate customers. Another eligible partner is TD Tech.
The Trump effect
Ever since the US administration, then led by Donald Trump, decided in 2019 that it could no longer trade with US companies, Huawei has gradually disappeared from the consumer sector.
The inability to trade with such companies – and in general also with those companies, such as Taiwan Semicondutor Manufacturing Co (TSMC), which use machinery of US origin – prevents Huawei from using, for example, the version of Android with the Play Store. by Google; licensing Windows for its laptops and using Intel or AMD processors.
Since then, the share held by Huawei in smartphones internationally has dropped considerably: basically Huawei smartphones exist in China, where the lack of Google’s Play Store has not caused any negative effects. At an international level, Huawei uses its AppGallery, a digital store that has gradually enriched with new applications; but the lack of hardware components has devastated the mobile accounts of the company, which also offers equipment for the development of mobile networks.
Huawei’s revenues have dropped a lot and the management has stressed that, for now, its goal is to “survive” by focusing on cost reduction and network division.
Licensing the brand, while maintaining control over the design of the products, would therefore allow Huawei to return with a consistent presence on the market: or at least try. Huawei’s engineers, Bloomberg reported, are already reviewing the internal components of smartphones to use Qualcomm or MediaTek chips instead of HiSilicon, i.e. the proprietary ones.
The rebirth of Honor
In November 2020, Huawei decided to sell Honor, a brand it used to offer high-performance devices at a lower price than those of the Huawei brand, which now operates independently.
Honor opens the first self-financed factory. Independence from Huawei is increasingly marked
Go to the deepening
Despite this, some US senators are not convinced of Honor’s actual independence and have asked that Honor be blacklisted as well.