AT&T walks away from deal to sell Huawei smartphones

AT&T walks away from deal to sell Huawei smartphones

AT&T walks away from deal to sell Huawei smartphones

No one has officially said why AT&T walked away from the partnership, but USA lawmakers reportedly have security concerns with Huawei selling a consumer product through a major United States mobile carrier. Even the company acknowledges its relative obscurity with the USA marketing tagline: "The best phone you've never heard of".

Huawei Technologies Co Ltd's [HWT.UL] planned deal with US carrier AT&T Inc (T.N) to sell its smartphones in the United States has collapsed at the 11th hour because of security concerns, people with knowledge of the matter said, in a blow to the Chinese firm's global ambitions.

Huawei, which launched the Mate 10 Pro at CES this week, a top-end model that aims to compete with Apple and Samsung, will still be able to sell products via open channels, although these account for only around 10% of the market.

Huawei is the fourth-biggest smartphone maker globally because of its massive popularity in Asia, according to IDC.

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The document said that later information obtained by the panels "only reinforces our concerns regarding Huawei and Chinese espionage".

This isn't the first time United States politicians have suspected Huawei of being a security threat, though they have never offered proof in public.

But plans of a business deal evaporated this week after concerns about security and ties to the Chinese government, according to reports by The Wall Street Journal and The New York Times.

These sorts of titles are often little more than ceremonial, of course, and Gadot's involvement with the company could ultimately amount to simply appearing in ads and posting her Huawei-related experiences on social media.

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The development is a blow for Huawei, which has its USA headquarters in Plano.

The Huawei's CEO of the Consumer unit, Richard Yu, told a broad audience at the CES Technology Fair in Las Vegas that the deal with a USA operator "unfortunately" has not been achieved.

The flagship Mate 10 Pro that was to be introduced is Huawei's most high-end product to date, equipped with its own AI-powered chips that Huawei says process data much faster than those used by Apple and Samsung. But then Yu broke from the script addressing telecom giant AT&T's last minute decision to pull out of a deal to carry Huawei phones in the U.S.

"Everybody knows that in the United States market that over 90 percent of smartphones are sold by carrier channels", Yu said. Carriers will select Huawei.

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"Two years ago, you couldn't get equipment outside of the carriers", the executive said.

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