Huawei is in talks to sell its premium smartphone brand Mate.

Huawei said that it is considering selling off its Mate and P30 phone lines, which are premium series that compete with Apple iPhones and Samsung smartphones. Huawei is also in talks to sell out its server and cloud storage divisions and is considering selling its laptop division, according to a source briefed on the matter.<br><br>Huawei, China's largest smartphone maker, is poised to sell off Honor as it looks to offload non-core businesses in pursuit of greater growth.<br><br>Huawei declined comment on the matter.<br><br>“They are trying to get rid of the low-margin business, and focus on high-margin, high-tech businesses,” said Nicole Peng, an analyst at Canalys based in Shanghai.<br><br>Huawei is trying to create a level of separation so Honor can source components from US suppliers, said Will Wong, an analyst at IDC based in Singapore.<br><br>Huawei was blacklisted by the US in May 2019 and prohibited from sourcing key components such as chips from US suppliers. The ban has hurt Huawei's ability to design and produce smartphones, while its overseas sales plummeted as the Mate 30 series lacks full access to Google's Android ecosystem.<br><br>Honor is a mid-range smartphone brand that is the best-selling smartphone brand on Chinese e-commerce platforms. The brand is popular among Chinese youth for offering quality smartphones at prices lower than Huawei devices.<br><br>Huawei is in talks with a consortium of buyers led by Digital China Group, the main distributor for Huawei's products in China. The consortium also includes Tianjin-based chipmaker Hubei Sanning and Honour’s parent company Honor Terminal. Hubei Sanning is a chipmaker that specialises in display driver ICs, which are used for smartphone screens.<br><br>The sale will also include Honor’s X10 and X20 series, Honor V series of TVs as well as all Honor 5G smartphone lines, according to the report.<br><br>The other two lines of phones, Mate and P30, are also up for sale, according to sources.<br><br>Huawei is also considering selling its server and cloud storage divisions and is considering selling its laptop division, according to a source briefed on the matter.<br><br>“As for the Mate series, it’s not confirmed yet whether it will be sold, but the company is looking for potential buyers,” the source said. “The chances of them selling the P30 line is a bit lower than the Mate series.”<br><br>Huawei is also working on creating a new division focused on smart vehicles, according to the person briefed on the matter, in a long-term bet on the Internet of Things, which makes all devices connected to the internet through 5G networks.<br><br>Huawei, China’s largest smartphone maker and one of the biggest suppliers of 5G network infrastructure, declined to comment.