Despite the situation, Huawei recently saw the US embargo tighten led by President Joe Biden. In other words, it is becoming increasingly difficult for the Chinese giant to do business, especially in the smartphone market.
Currently, Huawei is unable to install Google’s services on its smartphones and is also struggling to get supplies from its suppliers due to Washington’s sanctions. Thus, the mere fact of manufacturing devices becomes: complicated by the lack of components.
However, Huawei seems to have a plan to get around the embargo. Second Bloomberg sources expert on the subjectthe Shenzhen group plans a licensing system through who would design smartphones that would be licensed to other companies that would take care of the production.
The third parties would then take care of obtaining the necessary components from suppliers with which Huawei no longer has the right to cooperate. Bloomberg explains that the company would consider using the production lines of China Postal and Telecommunications Applicances Co. (PTAC), a Chinese state-owned company.
One of PTAC’s subsidiaries, Xnova, already sells smartphones labeled “Nova” (a brand of Huawei). In exchange for this partnership, Xnova would also have the right to market smartphones under its own brand, but based on designs supplied by Huawei.
We also learn that Huawei engineers have already started rearranging the internal components of smartphones so that they can contain chips from Qualcomm or MediaTek instead of Kirin.
Huawei is therefore aiming for a significant increase in smartphone production for more than 30 million deliveries in 2022 combining the devices still produced in-house and those from partnerships.
This information also raises some questions about the case of Honor, a former subsidiary of Huawei that became independent a few months ago. The latter could exploit this licensing system using the designs designed by the former parent company, but using Google’s services on its smartphones.