ZTE will no longer sell smartphones, it is the consequence of the ban imposed by the U.S. authorities regarding the purchase of American components. Production plants are at a standstill and shops are now selling the latest stock of ZTE-stamped devices. The company appealed the decision.
Les Echos reveals that ZTE is now stopping selling smartphones. The Chinese manufacturer ceases most of its commercial activities since it is no longer able to purchase American components for a total of 7 years. As Qualcomm’s SoCs are no longer accessible to it, ZTE’s production plants are now shut down due to a lack of components. However, the manufacturer could turn to another SoC manufacturer such as MediaTek.
ZTE is forced to stop selling smartphones
Another option is being considered, such as selling the manufacturer’s mobile arm to Huawei, Oppo or Xiaomi. However, the company is not there yet. A general meeting of shareholders should have taken place on Friday, May 11, 2018, and was finally postponed until June 2018. ZTE will have to choose the best option for its future, either resell its mobile business or choose new partners for the manufacture of its next smartphones.
ZTE has also filed an appeal to challenge the Trump administration’s decision. Apart from smartphone-related business activities. The company may also have difficulties in other business sectors such as the supply of network equipment. This is the consequence of the violation of the sales embargo to Iran and North Korea. ZTE acknowledged the facts and the US authorities decided to impose an exemplary sanction on it. As revealed by the U.S. Department of Commerce:“ZTE provided us with information that was essentially acknowledging that it had made false statements. We cannot rely on what they tell us. In international trade, the truth is very important.”
