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January 11, 2018

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AT&T drops plan to sell Huawei phones

TELECOMS carrier AT&T has dropped plans to sell China’s Huawei smartphones in the United States, dealing a setback to the No. 3 global phone maker’s expansion plans, according to news reports.

The Wall Street Journal, which reported the development on Tuesday, gave no reason for AT&T Inc’s decision. Hong Kong’s South China Morning Post said Huawei Technologies Ltd’s vice president for consumer business, Richard Yu, confirmed the move in a text message to the newspaper and wrote, “We have been harmed again.”

A Huawei spokesman declined to comment.

Yu said in December the company would announce smartphone sales through a US carrier this week. Huawei sells some models in US electronics stores and online but has a minimal share of an American market in which most sales are through carriers.

Ahead of the planned announcement, Huawei had issued a statement that said, “Over the past five years Huawei has proven itself by delivering premium devices with integrity globally and in the US market. On Tuesday Huawei will introduce new products to the US market, including availability.”

Globally, Huawei’s handset business trails Samsung and Apple by shipments. But it leads in China, the biggest market, and says it expects to ship a total of 150 million units this year.

Huawei’s shipments rose 16.1 percent in the latest quarter over a year earlier to 39.1 million handsets, ahead of Apple’s 2.6 percent growth to sales of 46.7 million, according to IDC.

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