Skip to main content
  1. Home
  2. Mobile

Digital Trends may earn a commission when you buy through links on our site. Why trust us?

Huawei’s new plan may help it circumvent U.S. sanctions

Rahul Srinivas
By

Chinese smartphone maker Huawei, which has been badly hit by U.S.-imposed sanctions, is reportedly working on a new plan that could potentially help it circumvent those restrictions, Bloomberg reports. The plan involves the company licensing smartphone designs to some of its existing partners, which would then source parts and technology from entities that Huawei itself is barred from dealing with.

The companies that Huawei intends to work with include a little-known firm called Xnova and another company called TD Tech Ltd. Interestingly, Xnova is the subsidiary of a larger Chinese state-owned company called China National Postal and Telecommunications Appliances Co. (PTAC), which already sells Huawei’s existing Nova series devices on its own e-commerce platform. Both these companies aim to license smartphone designs from Huawei, but will most likely sell these devices under their own brand names.

Recommended Videos

The ongoing sanctions — in place since May 2019 — effectively prevent Huawei from dealing with companies like Taiwan Semiconductor Manufacturing Co. (TSMC), Google, and Qualcomm. As a result, Huawei is unable to continue working on its HiSilicon chipsets, use Google Play Services on its Android phones, and use Qualcomm processors or 5G chips on its smartphones.

The rear panel of the Huawei P50.
The Huawei P50 was among the few smartphones Huawei launched in 2021. Image used with permission by copyright holder

This move from Huawei could be a last-ditch attempt to salvage its smartphone business, which has been decimated by the sanctions. The two-year period saw Huawei drop from the list of the top smartphone brands in the world while its consumer business has seen dwindling sales for several straight quarters.

Related

According to people familiar with the matter, the move is a result of the success Huawei saw with the sale of its sub-brand Honor in 2020. Soon after the sale, Honor was able to re-stablish ties with suppliers like Qualcomm and Google. As a result, it is now gradually making its way up the ranks and continues to launch new handsets at regular intervals.

If negotiations with these partners succeed, Huawei aims to sell as many as 30 million smartphones in 2022, the report adds.

Editors' Recommendations

Topics
Rahul Srinivas
Rahul Srinivas
Rahul is a smartphone buff turned tech journalist who has been tinkering with all things mobile since the early 2000s. He has…
You’ve never seen a smartwatch like the new Huawei Watch Buds
Person using the Huawei Watch Buds, with the smartwatch open on the wrist.

Here’s a product you probably haven’t seen before. Meet the Huawei Watch Buds, a smartwatch with a pair of true wireless earbuds inside. That’s right, it’s a two-in-one solution to a problem you didn’t know existed.

But before you dismiss it as being a ridiculous gimmick, Huawei may actually be on to something here, and there’s no doubt this is a properly thought-out product, and not something sketched out on a napkin during a drunken night out.

Read more
The Nothing Phone 2 is real, and it’s coming to the U.S. this year
Nothing Phone 1 Glyph Interface lights.

The Nothing Phone 2 will be coming to the U.S. this year, CEO Carl Pei said today. The company previously launched its first entry into the smartphone market in Europe and Asia due to resource constraints.

“We decided to make the U.S. our No. 1 priority in terms of markets,” CEO Carl Pei said in an interview with Inverse. “We couldn't do it earlier because we were only in our second year and our hands were tied building the team as we were building the products. Now as we're on a more solid footing, we can take a step forward.”

Read more
The Nothing Phone 1 has finally launched in the U.S. — kind of
The Nothing Phone 1's camera module.

The Nothing Phone 1 launched globally last year with vague promises of a future U.S. release, but now Nothing fans don't have to wait any longer for the smartphone to make its way stateside. Soft-launching through a "Beta Membership," the Nothing Phone 1 is finally available for Americans who are willing to be a part of Nothing's test program before it officially launches with retailers later in 2023.

While it's certainly exciting for the Nothing Phone 1 to be making its way to the U.S., the release and branding of the membership program are a little odd. It gives fans the opportunity to try out the phone and test Nothing OS 1.5, which is based on Android 13 and represents a major update from Nothing OS 1.0's Android 12 foundation. If you want in, you need to pay $299.

Read more