February 27, 2021, 10:48

Huawei Denies Rumors of Plans to Sell Off Premium Smartphone Business

Huawei Denies Rumors of Plans to Sell Off Premium Smartphone Business

MOSCOW (Sputnik) – Chinese tech giant Huawei on Monday rebuked reports that it planned to sell off its premium smartphone brands as part of the company’s efforts to dodge strict US sanctions.

“Huawei has absolutely no plan to sell its smartphone business. Huawei will continue to strive to build a world-leading high-end smartphone brand and try it best to offer excellent product experiences and services to consumers,” the company said in a statement, according to Shanghai-based The Paper.

Huawei’s response came after Reuters reported earlier that the company was in talks to sell its premium smartphone brand P and Mate.

Amid escalation in bilateral tensions between China and the United States, the Trump administration added Huawei to the “entity list” in May 2019, which basically prohibited US companies from doing business with the Chinese tech giant without prior US government approval.

The US sanctions brought serious challenges to Huawei’s smartphone business, as the company struggled to secure supplies of microprocessors for its devices because of US dominance in the smartphone chipset industry.

Huawei was forced to sell off the Honor smartphone brand in November last year. After becoming an independent company, the Honor brand announced its upcoming flagship smartphone, which will feature microprocessors from Taiwan-based MediaTek, and the company said it had signed supply deals with US chipset giant Qualcomm last week.

Source: sputniknews.com

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