- Huawei Technologies Co, Ltd aimed to relaunch 5G phones by 2022 to overcome the U.S. sanctions and win back market share.
- Huawei has been developing strategies to bypass the sanctions as the sanctions hit its global and domestic market share, Financial Times reports.
- Revenues from its smartphone-led consumer business fell 50% in 2021.
- Also Read: Pressure Mounts On US To Blacklist This Top Chinese Chipmaker
- One approach is to redesign its smartphone without using restricted advanced chips.
- Huawei reworked its phones to use less advanced chips made by Chinese companies that will enable 5G. It could affect the user experience versus Huawei’s previous generations and rival Apple Inc’s AAPL iPhone 14.
- Huawei also explored collaborating on a phone case product that enables 5G.
- In September, Huawei launched its latest flagship smartphone with satellite communications capabilities, leaving behind market leaders Apple and South Korea’s Samsung Electronics Co, Ltd SSNLF, also working on satellite connectivity.
- “The company is trying its best to appeal to users at a time when the consumer market is weak,” the report cited an analyst.
- “China’s technology self-sufficiency plan could be a potential driver in helping Huawei to join the 5G competition,” the report quoted IDC analyst.
- But as long as the U.S. sanctions are in place, Huawei is at a severe disadvantage, experts said.
- Customers in China have started pushing back against the high price tag of Huawei’s phones lacking 5G services.
- Price Action: AAPL shares traded higher by 0.10% at $146.54 on the last check Thursday.
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