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Huawei seeks buyer for its server division

The bad news continues for Huawei. As revealed by Bloomberg a few days ago, the Chinese multinational would be looking for a buyer for its division of x86 servers, evidencing once again that the weight of the sanctions imposed by the United States is beginning to be truly unaffordable for the brand, beyond its domestic borders.

As explained in the same information, what has been one of Huawei’s most important divisions to date could end up being acquired by a consortium of companies, which would be willing to pay several hundred million to take control of brands such as OceanStor Dorado.

The fact that the company is still unable to acquire chips from companies such as Intel or AMD has precipitated the decision to exit the x86 server business, since it has no choice but to intensify its efforts in an undoubtedly interesting business ARM segment. for which, you will need to design your own processors.

What about buyers? As in the case of the sale of Honor, the Chinese multinational would be holding talks with other Chinese companies, some of which would be backed by the government itself. These would include the Henan Information Industry Investment Co., which is state-owned and has partnered with Huawei’s server group, or the Chinese asset management company Huaqin Technology.

In any case and as indicated by IDC, Huawei’s server business has not managed to consolidate in the last year. In this sense, the consulting firm affirms that Huawei has not managed to position itself among the five largest companies in this segment, as it aspired to do, which means that this division has generated less than 1,000 million dollars in turnover in the last year, at the same time that it has sold less than 150,000 servers worldwide, during that same period of time.

These are numbers, however, that are aligned with the financial results that the company is registering in recent quarters. In the third of this year, the company declared revenue of 21,200 million, which represents a fall of no less than 38% compared to the same quarter of the previous year.

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