Not signing this deal with AT&T won't completely knock Huawei out of the USA market, but the Mate 10 Pro won't sell anywhere near as well as they anticipated. Richard Yu, CEO of Huawei's consumer products division, addressed the void agreement at his CES keynote speech, in which he presented the Mate10 Pro for the US market. Most US consumers don't buy unlocked phones, though, instead going through carriers to buy new phones.
The China-based telecom operator Huawei failed to make a deal to sell its new smartphones through the United States operator.
"This makes it very hard for Huawei to get significant in the U.S.as the open channels account for only about 10-11 percent of the market", said Canalys analyst Mo Jia, referring to sales channels outside telecom carriers and vendors' own stores.
Its dominance comes just as big US carriers are expected to invest about $275 billion over seven years to deploy fifth generation, or 5G, networks that can carry huge amounts of data for high-quality mobile video and self-driving cars, the Journal reported. A group of US lawmakers had earlier written a letter to the USA telecommunications regulator expressing misgivings about a potential deal between Huawei and an unnamed carrier, the New York Times reported.
After the Huawei Mate 10 Pro presentation, Yu pulled up a slide that read "Something I Want To Share".
But noticeably absent from the list of supporters was any major local carrier, in a market where about three-quarters of all people get their smartphones through their respective wireless-service providers, according to data tracking firm IDC.
Huawei's Washington-based spokesman William Plummer said on Tuesday that "privacy and security are always our first priority".
As early as 2012, the U.S. government conducted a probe into Huawei and another Chinese telecom company, ZTE, on the grounds they represented security threats, but it never provided substantial proof to support its allegations.
A representative of Huawei said on Thursday that they believe the move to protect their intellectual property rights can help promote the healthy and sustained development of the science and technology industry. "Huawei has treated us better than anybody". Huawei's potential deal with AT&T was canceled due to security concerns.