Huawei Finds Way Around US Sanctions on Smartphones

The trade war between China and the US has claimed many victims, including Huawei. This is not a new theme and the brand seems to have overcome the problem with its ecosystem. Even so, it did not give up on maintaining its position in the market.

Of course, for that you need to have access to many components, which until now seem barred. Huawei will now have one more action in progress, which could overcome all the limitations imposed by the US and thus return in force to the smartphone market.

More than services from Google and other partners, Huawei has some dependence on the component market. This was one of the points of the US attack on the brand and one of the ways found to limit its presence in the smartphone market.

If in the first case everything was resolved with HarmonyOS and its ecosystem of services and apps, in the case of components it is different. Huawei reaches the point of adapting internally to be able to offer new proposals, especially in the smartphone market, as is expected to happen with the SoC Snapdragon.

Huawei USA smartphone components market

To get around all these limitations, Huawei may soon take a step to circumvent US sanctions on smartphones. Which is advanced is that the brand will license part of its brand to other companies, which would thus reach the market without limitations.

This first step would be done with the design part of smartphones and would guarantee access to key components. For now, the plan appears to focus on the company Xnova, which is owned by China Postal and Telecommunications Appliances. It would be this going to the market looking to buy all the different elements.

Huawei USA smartphone components market

There are also reports that TD Tech Ltd. will receive the same treatment, but in this case it will sell the smartphones under its own brand. These different business models will be tailored to each partner and thus find the simplest way to ensure that the US does not block access to components.

It may not be the brightest way to overcome this problem, but it gives Huawei a way to stay in the smartphone market. It is also a guarantee that this area would return to be profitable for the brand, after having sold Honor.

Source: Pplware by

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