In Order To Use US Technology, Huawei Licenses Phone Designs To Other Companies

Huawei plans to license its phone designs to other companies. (photo: doc. unsplash)

JAKARTA - The President of the United States (US) Joe Biden does not seem to want to remove the rules or restrictions from former President Donald Trump on Huawei. Now the Chinese company is taking another business path.

Huawei plans to license its phone designs to other companies, in a bid to circumvent restrictions on purchases of American-made hardware and software.

The Bloomberg report states that Huawei plans to start licensing its designs to the China Postal and Telecommunications Appliances Co. unit. state-owned Xnova, and the latter will try to buy critical hardware and software that are no longer permitted to be acquired.

Huawei's move will mark a continuation of an existing arrangement where Xnova sells Huawei-branded Nova phones in its online store, with the only difference being that Xnova can now use its own brand.

Another company that will soon sell self-branded phones based on Huawei designs is telecommunications equipment manufacturer TD Tech Ltd., but the partnership is still being negotiated.

Meanwhile, Huawei engineers adapted the phone's design to use Qualcomm and MediaTek chipsets, not those made by Huawei's subsidiary, HiSilicon.

Likely, this is the only way for the Chinese tech giant to stay ahead in the mobile market. However, time will tell whether this strategy will yield positive results. Huawei itself hopes that will lead to an increase in sales next year, perhaps by as much as 30 million units above current projections.

Citing TechSpot, Tuesday, November 16, it is no secret that Huawei's business has experienced a number of declines as a result of US sanctions. More than two years have passed since the Donald Trump administration blacklisted the Chinese tech giant, and it is no longer one of the top mobile phone manufacturers in the world.

In fact, it is no longer one of the top five mobile phone vendors in its home country. The company has taken tough steps in an effort to weather the storm.

This includes developing technological solutions for more efficient pig farming and releasing the Honor sub-brand into a separate entity, which is now owned and operated by a state-owned company.

Previously, Huawei also wanted to sell its server business unit based on the x86 architecture. The server unit is planned to be sold to a consortium in which at least one of the buyers is supported by the government.