Huawei and AT&T Fail to Reach Partnership

Chinese smartphone maker Huawei has failed to enter into a partnership with ATT to penetrate the US market, the Wall Street Journal reported on Tuesday.

Huawei Technologies Co, a leading smartphone company in China, was in talks with the US telecom giant to distribute the new version of its Mate 10 Pro smartphone. The deal was due to be announced this week, but ATT withdrew from the talks, the newspaper said according to sources familiar with the matter.

“In the past five years, Huawei has proven itself by delivering reliable, high-end devices globally and to the US market,” said a spokesperson in an email adding that the group still intends to bring the device to the US market.

The failure of a trading partner in the United States is a setback for the Chinese group that has the ambition to increase its share of the US market, dominated by Apple and Samsung.

Huawei and his fellow Chinese company OPPO are already competing for the third largest smartphone manufacturer in the world in terms of market share.

Even without the support of ATT, the group still intends to announce Tuesday new products in the US market, said the WSJ.

But a partnership agreement with a large service provider such as ATT or Verizon appears vital in getting a new smartphone adopted.

Another Chinese smartphone maker, Xiaomi Corp, is also in talks with ATT and Verizon for a distribution partnership.

This new setback for a Chinese company comes as the US authorities are tightening up on partnership and merger-acquisition operations by Chinese manufacturers.
Last week, US authorities opposed the acquisition of MoneyGram, the US group specializing in money transfers, by the Chinese Ant Financial, a financial company linked to online trading giant Alibaba.

Eid Lee

Eid is a freelance journalist from California. He covers different topics for The Talking Democrat but focuses mostly on technology and science.