Huawei hopes to release 5G phones despite US sanctions
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Chinese mobile giant Huawei has reportedly been developing strategies to circumvent the impact of US sanctions restricting access to US technology and launch 5G smartphones as early as next year.
The company, which briefly overtook Samsung as the world’s largest manufacturer in 2020, has been blacklisted by the US government, affecting the supply of everything from software to processors.
While Huawei has stocked up on components and tried to bring in as much development in-house as possible, its limitations have limited its ability to develop and manufacture smartphones, especially those with 5G.
Huawei USA
For example, the Huawei P50 comes with only support for 4G services.
however, the Financial times (opens in new tab) says the company plans to use less advanced chips that can still connect to next-generation networks.
While this entails an inferior user experience compared to previous Huawei devices or those of rivals, it would offer Huawei a route back to the market.
A source told the paper that the company “cannot wait forever”, especially given its shrinking domestic market share. Consumers would waive the relatively high price of
Huawei’s devices do not have 5G and opt for products made by rivals such as Xiaomi and Oppo. Another solution could be to partner with an unsanctioned manufacturer to build a phone case that would enable 5G.
Huawei’s blacklist was part of a wider attack on the company in previous years, with Washington deeming its equipment a national security risk. Huawei has stubbornly denied all allegations of wrongdoing.
While it was effectively frozen out of the market in the US, Huawei’s networking division did supply a number of smaller, nationwide operators that rely on the company’s relatively inexpensive equipment. The US government has approved a financing package for these airlines to remove this equipment and replace it with alternatives.
Meanwhile, restrictions on US companies doing business with Huawei have been eased somewhat, allowing them to engage in standard international business with the company.
Huawei has been approached for comment.