Huawei Enters into Distribution Partnership With Micromax: What Does it Mean?

Chinese smartphone brand and World’s Second largest company, Huawei, on Tuesday said it has entered into a distribution partnership with homegrown handset maker Micromax, a move that will help the Chinese firm strengthen its presence in the offline retail segment in India. Huawei had started selling its smartphones in India via the online route. Last year, it partnered with Croma to enter the offline retail channels and later inked a similar pact with Poorvika that operates a large chain of stores in the southern part of the country. And now, the company wants to take it forward with the partnership of Micromax.

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Huawei-Micromax Partnership Officially Announced Today

“We are already present in 200 sales points through our existing partnerships. The tie-up with Micromax will give us access to a strong network of 1.25 lakh outlets across 40,000 pin codes,” Huawei India Consumer Business Group Vice President (Huawei Brand) Rishi Kishor Gupta told PTI.

Without disclosing the financial details of the partnership, he said the partnership is “aimed at a long-term association under a commercial agreement, primarily driven by sales and purchases”.

The move assumes significance as Huawei faces a ban from the US government. In May, the US government added Huawei to an “entity list” of companies barred from receiving the US-made hardware and software components without permission from Washington.

US President Donald Trump in June-end said the US companies could sell equipment to Huawei but there is no known regulatory development after his statement to end the ban.

Google, which supports Huawei’s smartphones with its Android operating system, had said it would continue to support existing Huawei smartphones.

Gupta said Huawei has not seen any impact of the global developments on the sale of its smartphones in India.

“Indian market is a top priority for us and we have not seen any slowdown in sales. We remain committed to the market and will launch more devices in the coming months,” he said.