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

by Edgar Hayes January 10, 2018, 0:33
Blow for Huawei as AT&T deal collapses at the last minute

AT&T has backed off of a deal to sell Huawei phones in the US.

Its Mate 10 Pro smartphone, for example, will apparently be available unlocked for customers to buy, an unnamed source told the publication.

A deal between Chinese smartphone maker Huawei and AT&T to sell smartphones in the United States has fallen apart, U.S. business media reported Tuesday, January 9.

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

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. Huawei now sells to consumers online, but the lack of carrier deals has made the company basically irrelevant in the United States market. "US consumers need a better choice, and as a leader in technology and innovation, Huawei is prepared to fill this need", the company said in a statement provided to Reuters. The move could have helped Huawei increase its market share in the U.S. Huawei has been selling its phones unlocked in the U.S., but most consumers still buy their phones from their carrier, which gives them an easy way to try a phone in person before buying it and to spread out the payments once they do buy. It was heavily rumored that AT&T would be selling Huawei's flagship smartphone in the US, but it looks like the carrier backed out of the potential deal.

Amid reports of ongoing talks between the two companies, AT&T has announced Huawei phones will not be part of its handset offerings.

The reason blamed for the deal falling apart is pressure from the U.S. Senate and House intelligence committees via a letter sent to the FCC back on December 20. The congress members were concerned that Huawei was closely tied to the Communist Party as well as to intelligence services in China. USA customers who were looking forward to the device can get it, but not in the manner that many prefer and have grown accustomed to.

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