After years of attempts to enter the US market, Huawei CEO Richard Yu voiced his frustration during a keynote at CES.
Reports had indicated Huawei reached an agreement with AT&T to distribute the company’s smartphones in the United States. In anticipation of a major US launch, Huawei even hired Gal Gadot—best known for her role as Wonder Woman—as a brand spokesperson.
In December, Yu told the Associated Press, “We will sell our flagship phone, our product, in the U.S. market through carriers next year. I think that we can bring value to the carriers and to consumers. Better product, better innovation, better user experience.”
What was meant to be a high point at the keynote turned into disappointment when AT&T pulled out of the deal just a day earlier. Unsurprisingly, many at Huawei were frustrated by the change in plans.
Regarding carrier distribution in the US, Yu said, “Unfortunately at this time we cannot. It’s a big loss for consumers, because they don’t have the best choice for devices.”
In the United States, a large share of smartphone purchases are made through carrier subsidies. That makes partnerships with local carriers crucial for success in the market, a reality Huawei has found difficult to overcome.
Globally, Huawei ranks behind only Apple and Samsung in market share. The company enjoys strong sales of unlocked devices and maintains carrier agreements across China and Europe.
“We’ve won the trust of the Chinese carriers,” Yu told the audience. “We’ve also won spots on all of the European carriers.”
Yu emphasized the word “trust” repeatedly during his presentation, underscoring Huawei’s feeling that it faces unfair scrutiny as a Chinese manufacturer.
Concerns in the US stretch back several years. A 2012 report from the House Intelligence Committee flagged both Huawei and fellow Chinese vendor ZTE as potential security risks. Huawei’s founder, Ren Zhengfei, was singled out because of his past role as a deputy director in the People’s Liberation Army.
The report advised that “private-sector entities in the United States are strongly encouraged to consider the long-term security risks associated with doing business with either ZTE or Huawei for equipment or services.”
In the United Kingdom, similar concerns have been raised about Huawei’s role in telecommunications infrastructure. Rather than ban the company outright, UK authorities subjected Huawei’s equipment to review by an oversight board that includes representatives from security agency GCHQ, the Cabinet Office, and the Home Office.
Huawei has complied with UK oversight requirements and maintains a substantial presence in both telecoms infrastructure and the consumer smartphone market there.
Looking ahead, Huawei plans to continue pursuing carrier agreements in the US and will sell unlocked devices where feasible. Still, without carrier support, even a high-profile spokesperson will struggle to deliver the market penetration the company seeks.
Find a review of the Huawei Mate 10 Pro’s AI capabilities on our sister publication, AI News.
What are your thoughts on Huawei’s challenges in the US? Let us know in the comments.