AT&T Deal Collapse Forces Huawei to Rethink Global Plans

The abrupt demise of Huawei’s deal with AT&T is setting off a chain reaction within the Chinese tech giant as it realizes that this may mark the end of its American dream.

The failure of Huawei’s first-ever smartphone launch with a major U.S. carrier, after U.S. lawmakers demanded an investigation of the partnership, will force Huawei to shift its global expansion plans for the next several years. The company will likely redirect more of its resources into Europe and other major overseas markets, a senior Huawei executive said.

“We have no other options,” said the executive.

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In August, The Information reported that Huawei and AT&T had tentatively agreed on a partnership. Over the past several months, Huawei had relocated top engineers to the U.S. to make sure that its flagship phone for AT&T wouldn’t run into technical problems, according to employees. Huawei’s marketing team started working on new U.S. campaigns to promote the phone. Mr. Yu said in the interview last month that Huawei was ready to spend more than $100 million on marketing for its coming smartphone launch in the U.S.

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