US Sanctions: Huawei reportedly planning to license smartphone designs to partners
Huawei Technologies is reportedly planning working on how to overcome the challenges it is currently facing with the US Sanctions. The company is planning on working with other smartphone brands to bypass US sanctions, in order to get US technologies.
According to a Bloomberg report, the Chinese tech giant is planning on licensing its smartphone designs to other brands, which would enable it to gain access to critical US components.
The news arrives from sources close to the matter, who claim that the move would enable the company to help its declining smartphone business. For those unaware, Huawei was hit with various US sanctions that restricted its access to technologies that had its origins in the US.
In other words, this basically cut off its supply to key components for its smartphones, while another sanction cut off its chip supply from TSMC. This had effectively crippled its handset operations, but now, the company is considering licensing its designs to a unit of state owned China Postal Telecommunications Appliances Co. or PTAC. This brand will then buy parts that Huawei is banned from acquiring. The unit in question is Xnova, which is also the firm that is selling Huawei’s Nova series of smartphones on its official website.
Furthermore, the partnership is also expected to have the unit offer its self branded handsets that are based on the tech giant’s designs. Other partners include Chinese telecom equipment manufacturer TD Tech Ltd, which will also sell some models that feature Huawei’s designs under its own branding as well.
Kindly bear this in mind that this is still just an unconfirmed report at the moment, so take it with a pinch of salt. Just last year, the brand even had to sell off its budget smartphone making unit, Honor, and it is now attempting to “salvage” its existing smartphone business.