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

Huawei Founder and CEO Ren Zhengfei

The majority of phones in the U.S. are sold directly through operators, but Huawei, the world's third biggest smartphone maker, has never been able to agree a deal. Now, the smartphone maker has confirmed that that will no longer be the case.

According to the Wall Street Journal, AT&T, which is the second-largest provider of mobile phone services in the USA in terms of subscribers, changed its mind about a deal to sell Huawei phones. Huawei's CES 2018 keynote is happening tomorrow, and it'll be interesting to see what the company has to say.

In the recent past, Huawei has only sold its handsets in the USA through its own website, through Amazon.com and other online retailers, giving its phones less market exposure and making it impossible for buyers to examine the devices before making a purchase.

The deal reportedly died after members of both the US Senate and House intelligence committees wrote to the FCC.

Huawei's plans for growth in the USA led to heightened scrutiny by Congress.




The Huawei Mate 10 pro was supposed to be headed to mobile carriers AT&T and Verizon in the United States, the handset is now not coming to these carriers.

For now, part of Huawei's plan is to reach out to USA consumers using alternative channels such as online and physical retail stores. It would have been the Chinese company's biggest opportunity to break into the US market with its smartphones.

A report from The Information claims that the same "political pressure" situation happened here.

For many consumers it can be simpler to buy their smartphones directly from their mobile carriers where the handsets can be set up with a SIM card, data transfer services and related application services that make it easier to switch to a new phone brand.

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