Huawei Found A Way To Sell Phones With Google Apps Despite The US Ban

Within a few years, Huawei became one of the largest phone makers in the world. The Chinese company was so ambitious that it wanted to dethrone Samsung as the biggest smartphone vendor on Earth and put out exciting iPhone rivals.

Huawei P and Huawei Mate phone lines are getting more and more popular among consumers, with features borrowed from the Galaxy S and iPhone models while the company also works on its own technologies.

However, the glorious period didn’t last long as the US government prevented it from launching new flagships with US carriers then banned the firm from doing business with US companies, including Qualcomm and Google. The ban was imposed in May 2019, and Huawei has since found it impossible to make smartphones that could actually compete with Android and iOS rivals in western markets. The reason is that the ban means it could no longer include Google apps in its Android devices sold in western markets, even the Google Play Store. The Chinese firm still launched new Mate and P models, but it has reached a point where it’s considering selling these brands.

According to Reuters, Huawei is in talks with a consortium led by investment firms backed by the Shanghai government. The negotiation has been going on over the past few months and Huawei is exploring how it can sell the Mate and P brands in September.

A similar moved was used with Huawei’s budget sub-brand Honor, which was affected by the US ban. Honor was sold to a consortium backed by thirty dealers, led by a Shenzen government-led firm. Last week, Honor released the first smartphone since the sale, which might be shipped with Google services. On Friday, Honor announced new deals with Qualcomm and Intel, suggesting that the US ban doesn’t apply to the company anymore.

On the other hand, Huawei denied planning to sell the Mate and P brands. Spokesman of the Chinese firm said:

“Huawei has learned there are unsubstantiated rumors circulating regarding the possible sale of our flagship smartphone brands. There is no merit to these rumors whatsoever. Huawei has no such plan.”

Counterpoint’s data shows that the Mate and P phones accounted for almost 40 percent of Huawei’s total sales in Q3 2020. Nevertheless, the sales of the Mate 40 and P40 models are expected to go down due to the lack of Google services.

Huawei may keep making Google-less smartphones as it’s attempting to get consumers to accept an alternating Play Store instead of Google Play Store. But there’s a problem with the hardware because of insufficient chip supplies, causing difficulties in making high-end phones.

The company may discontinue Kirin chips in 2021 and the current stockpile will run out eventually. The HiSilicon division needs software from Synopsys and Cadence Design Systems, US firms. The production is handled by TSMC, which also makes several Apple devices. However, TSMC relies on equipment supplied by US companies.

The fact that Huawei is considering selling its flagship brands suggests that it doesn’t hope the Biden administration will overturn the ban.

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