Huawei intends to license smartphone designs to third parties to obtain key components

According to people familiar with the matter, Huawei’s smartphone business has been hit hard by US sanctions, and the company is planning to license its smartphone designs to third parties to obtain key components.

According to Bloomberg News, people familiar with the matter said that Huawei is considering licensing its design to a department of the state-owned China Posts and Telecommunications Equipment Group Co., Ltd. (PTAC), which will then seek to purchase the zeros that were blacklisted during the Trump era. part.

It is reported that this department called Xnova has already sold Huawei-branded Nova mobile phones on its e-commerce website. According to the partnership, Xnova will provide independent-brand mobile phones based on Huawei's design.

Another person familiar with the matter pointed out that China's telecommunications equipment manufacturer TD Tech will also sell some mobile phones designed by Huawei under its own brand. As negotiations are still going on, the partnership may change.

The report pointed out that this move may be Huawei's best opportunity to save its smartphone business after the US sanctions cut off its key chip maker TSMC, Google's Android app and Qualcomm's 5G wireless modem.

A year ago, Huawei sold its sub-brand Honor, so Honor can now purchase parts from suppliers including Qualcomm. The success of this spin-off encourages Huawei to seek new partnerships to maintain the vitality of its consumer business.

One of the people familiar with the matter said that Huawei's engineers have begun to redesign the circuits of some large smartphones that were previously driven by the company's internal HiSilicon chips so that they can adapt to Qualcomm or MediaTek processors. The person added that Huawei expects to rely on partners to make smartphone shipments (including internal models and models sold by partners) exceed 30 million next year.

Huawei declined to comment, and PTAC and TD Tech have yet to comment on this.

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