Huawei to sell smartphone designs to third party companies and access important components
Huawei has been working hard to get its feet back on the smartphone world, the company has launched the HarmonyOS operating system in order to resolve software service issues but the hardware remains unsolved at the moment. Although, Huawei has established some new supply chain links but the company still has a long way to get a complete
There’s a strange and new development that has appeared in this story. According to Bloomberg, Huawei is planning to license its smartphone designs to third parties as a way to gain access to critical components.
This is quite a move that the company has planned to take on this matter.
The source reveals that Huawei is considering licensing its smartphone designs to a unit of state-owned China Postal and Telecommunications Appliances Co., or PTAC, which will then seek to buy parts barred under the U.S. Entity List.
It’s also suggested that the unit, known as Xnova, is already selling Huawei-branded Nova phones on its e-commerce site and the partnership will see it offer self-branded devices based on the larger company’s designs.
On this matter, another Chinese company – TD Tech has also received a design license to launch phones similar to Huawei. These include the recent Huawei N8 Pro, which looks similar to the Huawei Nova 8 Pro.
U.S. Entity List:
In May 2019, the U.S. has included Huawei in a trade blacklist that prohibits Huawei from purchasing the component made with U.S.-made technologies. Therefore, Huawei cannot access Google apps and 5G chipsets in phones.
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.