Blow for Huawei as AT&T deal collapses at the last minute

Source: Verizon also under pressure to cancel upcoming Huawei phone launch

Blow for Huawei as AT&T deal collapses at the last minute

"We will sell our flagship phone, our product, in the USA market through carriers next year", Richard Yu, the president of Huawei Technologies' consumer business, said in a December interview, which was confirmed at the time by a Huawei spokesperson. That deal has been cancelled according to people claiming knowledge about the deal.

It is not known what prompted the decision, but a US Congressional panel had in the past raised national security concerns in relation to use of equipment made by Huawei, the paper noted.

Huawei has always been viewed with suspicion in Washington because of alleged links to the Chinese government.

According to the Journal, Huawei had been expected to announce Tuesday at the CES trade show in Las Vegas that it had reached an agreement with AT&T, its first partnership with a major U.S. mobile carrier. It is likely the same selling tactic that the company will have to resort to in light of the collapsed deal with AT&T.

Blow for Huawei as AT&T deal collapses at the last minute
Blow for Huawei as AT&T deal collapses at the last minute

Reports from The Wall Street Journal and other outlets say that AT&T was ready to announce a distribution deal with Chinese smartphone maker Huawei, but the deal fell through at the last minute. "US customers need a better choice, and as a leader in technology and innovation, Huawei is prepared to fill this need".

Officially, neither Huawei nor AT&T ever confirmed that a deal was even taking place and there's certainly no reason to expect that they would comment on this failed arrangement.

Another Chinese manufacturer, Xiaomi, also has been in talks with major United States telecom companies, according to reports.

Huawei had dismissed the report, saying it was politically motivated. "I think that we can bring value to the carriers and to consumers". The congress members were concerned that Huawei was closely tied to the Communist Party as well as to intelligence services in China.

Latest News