One week after Trump to increase sanctions level against Huawei, information has arrived that the manufacturer is willing to sell its P and Mate series. According to the investigation by Reuters agency, movements in this direction have already been taking place since September 2020. A consortium led by investment firms supported by the Chinese government would be the possible buyer, in a negotiation similar to that which took place with the Honor brand.

The company's top-of-the-line smartphones have already encountered complications in keeping up with the times. Much of this is due to the Kirin chips, which have become quite scarce for the company as suppliers are banned from selling U.S. parts and technology to the Chinese manufacturer. Huawei's HiSilicon division relies on software from U.S. companies to design its chips and outsources production to TSMC, which uses equipment from U.S. companies.

Escaping sanctions

It is still quite uncertain whether there will be a change in market movements in the face of the trade war scenario. Huawei may not find so much tranquility with the switch from Trump to Biden and its activities in the smartphone market may continue to encounter considerable obstacles in the coming days. A negotiation along the lines of what happened with Honor may be a very viable solution, considering the business that the former Huawei subsidiary has been building lately.

According to the consultancy IDC, a major global market intelligence provider, Huawei's Mate and P series reached $39,7 billion between the third quarter of 2019 and the third quarter of 2020. A significant amount that also justifies a possible interest from the Chinese government in participating in a solution for the manufacturer and its brands. However, according to the Reuters website, the Chinese government said it was not aware of the situation, and a company spokesperson stated that Huawei has no such plan.

In any case, the information provided also indicates that, if the deal is finalized, Huawei will likely maintain its current management team after selling its P and Mate series to the new entity. The two brands accounted for almost 40% of the manufacturer's total sales in the last quarter of 2020, according to Counterpoint, another important company in global market metrics.

Through which channels you reach those people, classic and out of the box. Reuters