Huawei may sell its server business due to the US sanctions


Huawei

After almost two years of struggling to keep its smartphone business in the same way it was before the US ban, Huawei decided to sell the Honor brand. The sub-brand has become part of a big Chinese company belonging to the state. Since then, the Honor brand has been re-acquiring rights, and with a plethora of new smartphones released with good specs and Google Play Services, it has the potential of taking Huawei’s former place in the smartphone market. Now, the big Huawei may be considering selling its x86 server division.

According to a report from Bloomberg, Huawei may be looking to sell off its x86 server division. The news comes straight from people familiar with the matter. Huawei is yet to confirm this information. Anyway, the insider claims that the US sanctions imposed on Huawei have been detrimental to its server supply chain. Therefore, the company is almost being forced to sell this arm of its business.

Huawei

As per the reports, Huawei may sell off its server division to a Chinese consortium of private and public sector companies. More specifically, Henan Information Industry Investment and Huaqin Technology. These two players are looking to takeover Huawei’s server-side business. We expect more details on this to emerge in the coming days if Huawei proceeds with the new deal. As per the source, the company has declined to comment on these reports. A similar situation happened last year when rumors emerged suggesting that it was gearing up to sell its Honor business. Huawei declined to comment first.

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Huawei struggles to keep its smartphone business relevant

According to recent reports, Huawei is also taking a hit in the smartphone segment, even in the domestic market. The brand has lost several positions in the past few months. The fact is that the brand has released just a few smartphones in the past few months. For the flagship segment, it only brought the Honor P50 series. It had to launch devices with Snapdragon 888 4G and Kirin 9000 4G configurations. Due to the US sanctions, the brand couldn’t release a 5G smartphone which makes it lose certain relevancy in a market of flagships that has already entered the 5G era.

In the meantime, Honor has acquired third place in the Chinese ranking of largest smartphone makers for Q3 2021. The brand recently brought its Honor 50 series smartphones to Europe and is in a bid to conquer the former Huawei fans in the globe.

Source/VIA :
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