Huawei's United States smartphone deal collapses

Huawei lost AT&T and Verizon due to political pressure but gains Wonder Woman

Huawei's United States smartphone deal collapses

This Monday The Wall Street Journal reported that AT&T abruptly backed out of a deal to sell Huawei newest phone, the Mate 10 Pro.

Preorders for the $799 unlocked Huawei Mate 10 Pro phones will begin February 4, with availability starting February 18 through Amazon, Best Buy and other stores.

Chinese smartphone maker Huawei had been looking for a way to crack into the USA market, and it thought it had finally found a partner in Dallas-based carrier AT&T.

The refusal is the latest example of a Chinese company struggling to develop its USA business.

The Mate 10 Pro - Huawei's main competition against Apple's iPhone and Samsung's high-end handsets - will still be on sale in the United States via sites such as Amazon.

Washington began to have concerns about Chinese investment in the United States before President Donald Trump took office past year, and those concerns have heightened.

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"We win the trust of the Chinese carriers, we win the trust of the emerging markets. and also we win the trust of the global carriers, all the European and Japanese carriers", he said.

According to Reuters, AT&T was pressured to pull out of the deal after 18 members of the US Senate and House intelligence committees signed a letter to regulators expressing concerns about Chinese companies getting involved in US telecoms.

The Chinese electronics manufacturer is one of the leading companies in the world that is dominating the smartphone-making scene.

In 2012, Huawei and ZTE Corp (000063.SZ) (0763.HK) were the subject of a US investigation into whether their equipment provided an opportunity for foreign espionage and threatened critical USA infrastructure - a link that Huawei has consistently denied. It was launched in Europe in October with a price tag of 799 euros ($955). It builds on past action against Huawei (the world's top seller of telecom equipment) and ZTE (ranked fifth), which included a ban on ZTE selling products to the US government agencies in 2013.

He said Huawei's proprietary mobile chips may have presented a bigger regulatory hurdle for its USA market entry in the current political climate, compared with other Chinese vendors' entry strategy that relies on US chip suppliers.

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