Huawei trims device business in Dhaka

Huawei trims device business in Dhaka
Chinese tech giant Huawei has significantly trimmed down its device business division in Bangladesh which was directly involved with monitoring its smartphone and other device businesses here, said insiders yesterday.

The development comes as among the world's biggest smartphone and telecommunications equipment makers faces challenges amid restrictions imposed by the Trump administration.

Yesterday was the last day of office for most officials of these devices division of Huawei Dhaka as the tech company plans to monitor its device business in Bangladesh from Malaysia, said industry insiders here.

Smart Technologies, distributor of Huawei smartphones in Bangladesh, will now look after the sales, marketing and business of Huawei's smartphone and other devices, said Md Anawar Hossain, the distributor's channel sales manager.

The tech company reorganised direct monitoring of device business due to factors like the Covid-19 pandemic, he said.

Huawei used to physically monitor operations and branding here earlier and can now mostly guide Bangladesh's procedures from Malaysia, he said over the telephone, clarifying that Huawei was not closing its device business here.

It really is basically changing procedure module, he said, adding that Smart Technologies, which have been handling sales and functions since November this past year, would continue steadily to do the device business as national distributor.

Huawei Dhaka office didn't comment on the issue.

Huawei had substantially reduced the number of employees in its device division towards the end of this past year as its smartphone business suffered for a series of US rules that restricted the business from using American technologies, including Google services.

THE UNITED STATES Department of Commerce said global chipmakers which had been using US technology now had to obtain a licence from the government to focus on designs for Huawei, reported BBC last month.

And from September 15, the company could no longer buy key chips from its manufacturers, reported BBC on September 23.

Huawei says it had to rush to stockpile chips prior to the latest tightening of trade restrictions from Washington, which has hit its supply hard, said the BBC.

The restrictions also damaged sales of Huawei smartphones here, partly for consumers' falling appetite for Huawei smartphones and an increasing number of smartphone assembling facilities here including of global brands such as for example Samsung, said industry stakeholders.

A high industry operator seeking to remain unnamed said Huawei became among the top three smartphone brands in high-end segment within a short while after it had launched its devices in Bangladesh.

It lost significant market share over the past year suffering issues in accessing Google services and for entry of competition in the market, he said.
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