Best Buy to Stop Selling Huawei Smartphones

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Best Buy Co Inc (NYSE:BBY) is reportedly planning to stop selling smartphones made by Huawei.

Best Buy to Stop Selling Huawei Smartphones

According to the recent reports, Best Buy is no longer placing orders for shipments of smartphones from Huawei. These reports also claim that the retailer will only carry the devices for the next few weeks. However, Walmart Inc (NYSE:WMT) will continue to carry devices from the smartphone maker.

A statement from Best Buy says that it doesn’t talk about the specifics with its suppliers. A similar statement was made by Huawei. This has neither company confirming or denying the reports.

Best Buy reportedly choosing to drop Huawei smartphones from its stores would be a further blow against the company. The smartphone company hasn’t been able to make a strong push into the U.S. market, despite struggling to do so. It also likely doesn’t help that the U.S. government has warned customers against buying the company’s devices due to the possibility of spying by the Chinese government, reports CNN.

“Huawei still has access to online channels, and that’s fine for budget phones…” Avi Greengart, research director for consumer platforms and devices at Global Data, told Tom’s Guide. “However, Huawei is trying to compete at the high end with Apple and Samsung, and, for that, it really helps to have retail outlets where people can see the product before paying $700 for it.”

BBY stock was down 1% as of noon Thursday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/best-buy-will-stop-selling-huawei-smartphones/.

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