AT&T walks away from deal to sell Huawei smartphones

AT&T walks away from deal to sell Huawei smartphones

Yolanda Curtis
January 13, 2018

Yu pointed out that the company had already won the trust of other major markets through carriers around the world including China, Europe and Japan, and in an apparent move to address the espionage allegations, he added: "We are serving over 70 million people worldwide". No one has officially said why AT&T walked away from the partnership, but USA lawmakers reportedly have security concerns with Huawei selling a consumer product through a major United States mobile carrier. The letter also cited apprehension regarding a pending deal between Huawei and an unnamed American telecommunications company.

On Tuesday, the Wall Street Journal reported that U.S. -based telecommunications company AT&T has chose to back away from a deal to sell Huawei's smartphones in the U.S. Huawei had been expected to announce the deal at CES that day.

Huawei, which launched the Mate 10 Pro at CES this week, a top-end model that aims to compete with Apple and Samsung, will still be able to sell products via open channels, although these account for only around 10% of the market.

A second deal with Verizon is looking unlikely, with the carrier also under political pressure to cancel a planned summer launch of the Mate 10 Pro, according to Android Police. I think is a quite big loss for us and also for carriers.

Meanwhile, The Information claimed to have obtained a copy of a letter that was written by the U.S. Senate and House intelligence committees and was sent to the Federal Communications Commission dated December 20, 2017. On Tuesday, the company announced Gadot's endorsement at the Consumer Electronics Show (CES) in Las Vegas, saying Ms. Gadot will serve as the company's first "Chief Experience Officer". Richard Yu, CEO of Huawei's consumer products division, addressed the void agreement at his CES keynote speech, in which he presented the Mate10 Pro for the US market. Both Mate 10 and the Pro version will be available in US markets on February 18, via the Amazon online store or brick and mortar shops like Best Buy. Most US consumers don't buy unlocked phones, though, instead going through carriers to buy new phones. After 8 months, the Chinese court finally ruled and its decision isn't good at all for Samsung.

Huawei is the fourth-biggest smartphone maker globally because of its massive popularity in Asia, according to IDC.

In 2012, Huawei and ZTE Corp (000063.SZ) (0763.HK) were the subject of a US investigation into whether their equipment provided an opportunity for foreign espionage and threatened critical USA infrastructure - a link that Huawei has consistently denied.

China's commerce ministry hit back yesterday, defending the proposed Huawei-AT&T link-up as "purely business".

Whether Huawei will see the same success in California is anyone's guess.

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