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

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

"Huawei's philosophy is to always strive for innovation to deliver products that appeal to users around the world", said Pablo Ning President of Huawei Consumer Business Group Saudi Arabia.

If you'll recall, Huawei has reportedly been in talks for quite some time to debut its latest flagship, the Mate 10 Pro, on a couple of major U.S. carriers.

Top handsets like the Mate 10 Pro (above) were widely expected to become available to AT&T customers early this year, signaling a massive breakthrough for Huawei.

The original rumors about an AT&T sales channel to US consumers in 2018 began with comments in December from a Huawei executive who promised additional details at the CES 2018 Consumer Electronics Show, which opened in Las Vegas on January 8.

That placed Huawei's smartphones at a considerable disadvantage compared to Apple, Samsung and other phone makers whose products are readily available from mobile carriers' stores.

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

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

Now that its deal with AT&T has been scrapped, it seems that Verizon is under similar pressure to cut ties with the Chinese OEM.

So far there is no sign that Huawei is trying to strike a handset sales deal with any of the other major US mobile carriers, such as T-Mobile, Verizon or Sprint.

That may be good news for consumers, but that not might bode well for Huawei.

But the collapse of the deal with AT&T, first reported by the Wall Street Journal, will mean that Huawei will likely struggle to make a hit of its smartphones there as a USA mobile carrier would typically promote the products as well as provide subsidies and special package deals.

Sure, it sold phones unlocked through online retailers, but the only way to sell a real number of phones is via carrier partnerships.

AT&T was pressured to drop the deal after members of the U.S. Senate and House intelligence committees sent a letter on December 20 to the Federal Communications Commission citing concerns about Huawei's plans to launch consumer products through a major U.S. telecom carrier, online tech news site The Information reported.

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