The drop in demand for Huawei phones could also hurt European carriers that are “very heavily relying on the quality, with fairly low cost, of Chinese devices” to get customers onto the new hyperfast networks that are on the horizon, Mr. Talmesio said. And the diminished prospects in Europe may hinder Huawei’s ability to expand elsewhere. Huawei first made inroads by providing cheap gear to build phone networks in countries including Britain, Germany, France and Poland. Huawei gives carriers and retailers better financial terms than rivals by allowing them to make money from every handset sale. Industry analysts said retailers had an incentive to display and promote Huawei phones.

Source: New York Times May 24, 2019 04:02 UTC