Reuters is reporting that huawei is in talks to sell its “P” and “Mate” series of high-end smartphones, two people familiar with the matter said, in a move that could see Huawei eventually exit the business of making high-end smartphones.
Another person familiar with the matter said Huawei had been discussing the possibility of selling the brands internally since September last year, according to the report.
In addition, last year, after Huawei was sanctioned by the U.S. ban on sales and spun off its cell phone business, the overall market share showed a rapid decline. Last November, Huawei sold its subsidiary’s low-end smartphone brand Honor to a consortium backed by the Shenzhen government, and Huawei’s consumer business chief executive Yu Chengdong has said that Huawei will soon stop producing high-grade Kirin chips in the face of U.S. sanctions.
According to “International Data Corporation” (IDC), the P series and Mate series cell phone shipments are worth US$39.7 billion (about NT$1.1 trillion) from the third quarter of 2019 to the third quarter of 2020. According to market research firm Counterpoint, the P series and Mate series accounted for 40% of Huawei’s total sales in the third quarter of 2020, and Counterpoint analysts noted that both series were in short supply due to chip shortages. Sales of P and Mate series smartphones are expected to continue to decline through the first quarter of 2021,” said analyst Flora Tang.
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