Recently a rumor claimed that Huawei phone business is now on sale and the company replied this is false information and has no intention of parting its consumer business line. Huawei reportedly confirmed that the Chinese tech giant will increase investment in the smartphone business and will keep on building high-end devices.
The rumor says that Huawei may consider splitting up its consumer business internally, which may reduce its investment. Therefore, Huawei could end up opening a sale for its phone business.
On this matter, an insider revealed that the consumer business is an important factor in Huawei’s efforts in the enterprise market. The possibility of a large-scale spin-off in Huawei’s consumer business is unlikely.
It is true that Huawei’s market share in the smartphone segment has shrunk due to the U.S. ban and restrictions on important components for building new devices.
But Huawei has denied such rumors of giving up on the phone sector by exploring all ways to market its smartphones and other devices.
Some people from the industry believe that Huawei’s spin-off could take effect in these categories instead of the entire business. This may improve Huawei’s efficiency in different sectors of the segment and deliver better products.
Huawei also has plans to get into the game and digital currency industries, which needs consumer business as a foundation. Therefore, there’s no possibility of such happening in the consumer business for the time being.
In November 2020, Huawei sold its former smartphone subsidiary, Honor to a Chiense business group, which generated good results for both parties. It also allowed Honor to keep on making new smartphones and the company is seemingly doing good on its own.
Based on this, an industry expert said that the spin-off process could help Huawei to ease the business risk and increase cash flow inside the structure.
For now, the major challenges ahead of Huawei include the chip and semiconductor technologies. Therefore, it must overcome these difficulties in order to achieve new growth.
(via – Chinadaily)