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Wednesday, 5 June 2019

Commercial Target: Huawei Sells Submarine Cable Division

The minefield that the United States is preparing for Huawei is spreading among the company's business and already causes the first serious casualties. According to international media, the Chinese company plans to sell its Internet submarine cable division entirely and is reducing its production of smartphones.

Suspected spying involving Huawei and its relationship with the Chinese government, coupled with recent US sanctions against the multinational, are the main causes of the company's reputation decline and consequently affect its business partnerships.


Huawei Marine Systems is the company's segment in intercontinental fiber optic cable operations, of which it holds a 51% stake. Created in 2009, it has already implemented more than 50 thousand kilometers of cables in 90 projects. The giants Microsoft, Facebook and Google, for example, also have a series of equipment scattered across the oceans.


The division faces difficulties in maintaining and signing new contracts after Huawei was accused of using its technologies to spy on China. Because of the suspicions, potential partners are uncomfortable with business with a company that is constantly bridging terms. With financial problems, the Chinese manufacturer is selling its share of Huawei Marine Systems to the also Chinese Hengtong Optic-Electric. The sale was made official on the Shanghai Stock Exchange and the price of the transaction was not disclosed.


At the time of facing divesting underwater cable operations, Huawei is also reducing its smartphone production at the Shenzhen, China facility, according to the South China Morning Post. The report points out that Foxconn, the Taiwanese assembly partner of many handset makers, has found that Huawei has shut down "several phone production lines in recent days due to reduced orders for new phones." It is not known if the pause is permanent.

Shrinkage in the industry comes as a result of the US sanctions on Huawei, preventing US companies from negotiating with the multinational, which culminated in Google suspending its license to use Android on its smartphones, as well as Intel, Qualcomm and others by not providing more components for the assembly of the telephones.

Huawei has not officially positioned itself on both events.

Will you miss Huawei smartphones if it's no longer available for purchase? Leave your comment in the comments section below. 

Joseph Etim

Joseph Etim (B. Tech) is a blogger, mobile web developer and a tutor with a zeal for positive effects.

Website: Pepetimsblog

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Item Reviewed: Commercial Target: Huawei Sells Submarine Cable Division Rating: 5 Reviewed By: Joseph Etim