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Xiaomi’s new Mi CC brand will develop ‘trendy’ smartphones for young people

Huawei may be on the ropes as it battles sanctions from the U.S. government, but fellow Chinese smartphone rival Xiaomi is in expansion mode with the launch of a new brand that’s aimed at winning friends (and sales) among the young and fashionable.

“Mi CC” is the newest brand from Xiaomi. Unveiled on Friday, the phone-maker said it stands for “camera+camera” in reference to its dual-camera feature, but that apparently also segues into “a variety of meanings including chic, cool, colorful and creative.”

The end goal of that marketing bumf is a target customer that Xiaomi describes as “the global young generation.”

Essentially, what Xiaomi is doing here is breaking out a dedicated set of phones for those who care more about aesthetics than performance. To date, the company has built its brand on developing phones that are as good — well, nearly as good — as top smartphone rivals but at a fraction of the cost. The result of that is that a lot of marketing focus is on the technical details, even though Xiaomi has been lauded for some attractive designs, and CC adjusts that balance to target a different kind of audience.

Since Xiaomi has a history of bringing innovation into affordable devices, CC is one to watch out for.

Xiaomi’s CC teaser image doesn’t give much away, apart from the logo

The new division is the result of Xiaomi’s acquisition of the smartphone business belonging to Meitu, a selfie app maker.

Xiaomi bought the business last November to go after new demographics and build on the work of Meitu, which had sold just over 3.5 million after getting into the smartphone business in 2013. Those numbers weren’t enough to justify the continuation of Meitu’s phone business but, evidently, Xiaomi saw promise in that segment. Meitu retains a similarly positive outlook on the fashionable audience and it has a lot to gain financially from the success of CC, too.

Terms of the acquisition deal mean that Meitu will take 10 percent of all profits, with a minimum guaranteed fee of $10 million per year. Big sales could be significant for Meitu, which reported revenue of $406 million in 2018. Notably, two-thirds of that income was from phone sales but Meitu’s smartphone revenue dropped by 51 percent year-on-year. Hence, Xiaomi has come to the rescue with its know-how.

There’s no word on exactly what Mi CC devices will look like or where they will be sold, but Xiaomi is already trumpeting its differentiation.

“Mi CC is created by one of the youngest product teams in Xiaomi, among which half are art majors and are dedicated to creating a trendy design for young consumers,” it wrote in an announcement.

Gavin Thomas plays with a Mi CC phone in a teaser that the brand posted to its Weibo account

The first look is a teaser that features Gavin Thomas — an eight-year-old who went viral in China for his ability to speak Mandarin — but the phone itself is kept hidden in the video thanks to well-placed stickers.

As you’d expect from Meitu, there’s a lot of emphasis on selfies, stickers and other graphics.

Xiaomi has had success with brands, some of which include Redmi — its big-selling budget division — Poco, its ‘performance’-focused division, its gaming brand Shark, which looks much like Razer’s phones.

Outside of mobile, the company develops and sells a range of smart home products, many of which are licensed from third-party partners.

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Huawei says US ban will cost it $30B in lost revenue

Following a string of trade restrictions from the U.S., China’s telecoms equipment and smartphone maker Huawei expects its revenues to drop $30 billion below forecast over the next two years, founder and chief executive Ren Zhengfei said Monday during a panel discussion at the company’s Shenzhen headquarters.

Huawei’s production will slow down in the next two years while revenues will hover around $100 billion this and next year, according to the executive. The firm’s overseas smartphone shipment is tipped to drop 40%, he said, confirming an earlier report from Bloomberg.

That said, Ren assured that Huawei’s output will be “rejuvenated” by the year 2021 after a period of adjustment.

Huawei’s challenges are multifaceted as the U.S. “entity list” bars it from procuring from American chip makers and using certain Android services, among a list of other restrictions. In response, the Chinese behemoth recently announced it has been preparing for years its own backup chips and an alternative smartphone operating system.

“We didn’t expect the U.S. to attack Huawei with such intense and determined effort. We are not only banned from providing targeted components but also from joining a lot of international organizations, collaborating with many universities, using anything with American components or even connecting to networks that use American parts,” said Ren at the panel.

The founder said these adverse circumstances, though greater than what he expected, would not prevent the company from making strides. “We are like a damaged plane that protected only its heart and fuel tank but not its appendages. Huawei will get tested by the adjustment period and through time. We will grow stronger as we make this step.”

huawei

“Heroes in any times go through great challenges,” reads a placard left on a table at a Huawei campus cafe, featuring the image of a damaged World War II aircraft (Photo: TechCrunch)

That image of the beaten aircraft holding out during hard times is sticking to employees’ minds through little motivational placards distributed across the Huawei campus. TechCrunch was among a small group of journalists who spoke to Huawei staff about the current U.S.-China situation, and many of them shared Ren’s upbeat, resilient attitude.

“I’m very confident about the current situation,” said an employee who has been working at Huawei for five years and who couldn’t reveal his name as he wasn’t authorized to speak to the press. “And my confidence stems from the way our boss understands and anticipates the future.”

More collaboration

Although 74-year-old Ren had kept a quiet profile ever since founding Huawei, he has recently appeared more in front of media as his company is thrown under growing scrutiny from the west. That includes efforts like the Monday panel, which was dubbed “A Coffee With Ren” and known to be Ren’s first such fireside chat.

Speaking alongside George Gilder, an American writer and speaker on technology, and Nicholas Negroponte, co-founder of the MIT Media Lab, Ren said he believed in a more collaborative and open economy, which can result in greater mutual gains between countries.

“The west was the first to bring up the concept of economic globalization. It’s the right move. But there will be big waves rising from the process, and we must handle them with correct rather than radical measures,” said Ren.

“It’s the U.S. that will suffer from any effort to decouple,” argued Gilder. “I believe that we have a wonderful entrepreneurial energy, wonderful creativity and wonderful technology, but it’s always thrived with collaboration with other countries.”

“The U.S. is making a terrible mistake, first of all, picking on a company,” snapped Negroponte. “I come from a world where the interest isn’t so much about the trade, commerce or stock. We value knowledge and we want to build on the people before us. The only way this works is that people are open at the beginning… It’s not a competitive world in the early stages of science. [The world] benefits from collaboration.”

“This is an age for win-win games,” said one of the anonymous employees TechCrunch spoke to. He drew the example of network operator China Mobile, which recently announced to buy not just from Huawei but also from non-Chinese suppliers Nokia and Ericsson after it secured one of the first commercial licenses to deploy 5G networks in the country.

“I think the most important thing is that we focus on our work,” said Ocean Sun, who is tasked with integrating network services for Huawei clients. He argued that as employees, their job is to “be professional and provide the best solutions” to customers.

“I think the commercial war between China and the U.S. damages both,” suggested Zheng Xining, an engineer working on Huawei’s network services for Switzerland. “Donald Trump should think twice [about his decisions].”

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UK carriers warn over ongoing Huawei 5G uncertainty: Report

UK mobile network operators have drafted a letter urging the government for greater clarity on Chinese tech giant Huawei’s involvement in domestic 5G infrastructure, according to a report by the BBC.

Huawei remains under a cloud of security suspicion attached to its relationship with the Chinese state, which in 2017 passed legislation that gives authorities more direct control over the operations of internet-based companies — leading to fears it could repurpose network kit supplied by Huawei as a conduit for foreign spying.

Back in April, press reports emerged suggesting the UK government was intending to give Huawei a limited role in 5G infrastructure — for ‘non-core’ parts of the network — despite multiple cabinet ministers apparently raising concerns about any role for the Chinese tech giant. The UK government did not officially confirmed the leaks.

In the draft letter UK operators warn the government that the country risks losing its position as a world leader in mobile connectivity as a result of ongoing uncertainty attached to Huawei and 5G, per the BBC’s report.

The broadcaster says it has reviewed the letter which is intended to be sent to cabinet secretary, Mark Sedwill, as soon as this week.

It also reports that operators have asked for an urgent meeting between industry leaders and the government to discuss their concerns — saying they can can’t invest in 5G infrastructure while uncertainty over the use of Chinese tech persists.

The BBC’s report does not name which operators have put their names to the draft letter.

We reached out to the major UK mobile network operators for comment.

A spokesperson for BT, which owns the mobile brand EE — and was the first to go live with a consumer 5G service in the UK last month — told us: “We are in regular contact with UK government around this topic, and continue to discuss the impact of possible regulation on UK telecoms networks.”

A Vodafone spokesperson added: “We do not comment on draft documents. We would ask for any decision regarding the future use of Huawei equipment in the UK not to be rushed but based on all the facts.”

At the time of writing Orange, O2 and 3 had not yet responded to requests for comment.

A report in March by a UK oversight body set up to evaluate Huawei’s security was damning — describing “serious and systematic defects” in its software engineering and cyber security competence, although it resisted calls for an outright ban.

Reached for comment on the draft letter, a spokesperson for the Department for Digital, Culture, Media and Sport told us it has not yet received it — but sent the following statement:

The security and resilience of the UK’s telecoms networks is of paramount importance. We have robust procedures in place to manage risks to national security and are committed to the highest possible security standards.

The Telecoms Supply Chain Review will be announced in due course. We have been clear throughout the process that all network operators will need to comply with the Government’s decision.

The spokesperson added that the government has undertaken extensive consultation with industry as part of its review of the 5G supply chain, in addition to regular engagement, and emphasized that it is for network operators to confirm the details of any steps they have taken in upgrading their networks.

Carriers are aware they must comply with the government’s final decision, the spokesperson added.

At the pan-Europe level, the European Commission has urged member states to step up individual and collective attention on network security to mitigate potential risks as they roll out 5G networks.

The Commission remains very unlikely to try to impose 5G supplier bans itself. Its interventions so far call for EU member states to pay close attention to network security, and help each other by sharing more information, with the Commission also warning of the risk of fragmentation to its flagship “digital single market” project if national governments impose individual bans on Chinese kit vendors.

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Startups Weekly: VCs are drunk on beverage startups

Hello and welcome back to Startups Weekly, a newsletter published every Saturday that dives into the week’s most noteworthy venture deals, fundraises, M&A transactions and trends. Let’s take a quick moment to catch up. Last week, I wrote about an alternative to venture capital called revenue-based financing and before that, I jotted down some notes on one of VCs’ favorite spaces: cannabis tech. Remember, you can send me tips, suggestions and feedback to kate.clark@techcrunch.com or on Twitter @KateClarkTweets.

This week, I want to share some thoughts — questions, rather — on beverages. Just as my inbox has been full of cannabis-related pitches, it’s also been packed with descriptions of new…drinks. Perhaps the most noted so far is Liquid Death, canned water for the punk rock crowd, because why not? Liquid Death has attracted nearly $2 million in funding from angel investors like Away co-founder Jen Rubio and Twitter co-founder Biz Stone. Before I tell you about a few other up-and-coming beverage makers, I must beg the question: Does the beverage industry need disrupting?

Founders say yes. Why? For one, because millennials, according to various studies, are consuming less alcohol than previous generations and are therefore seeking non-alcoholic beverage alternatives. Enter Seedlip, a non-alcoholic spirits company, for example. Or Haus, launching this summer, an all-natural apéritif distilled from grapes that has a lower alcohol content than most hard liquors. Haus, like any good consumer startup in 2019, is shipped directly to your door.

Beverages are being disrupted, there’s no stopping it. pic.twitter.com/DMEg88t4iO

— Kate Clark (@KateClarkTweets) May 21, 2019

Bev, a canned wine business that recently raised $7 million in seed funding from Founders Fund, thinks marketing in the alcohol industry is the problem. Founder Alix Peabody designed a line of female-focused canned rosé. If you’re wondering why alcohol needs to be gendered in such a way, you’re not alone. Peabody explained most alcohol brands cater to men, and that’s a problem.

“The joke I like to make is there’s a go-to type of alcohol for every type of bro and we just don’t have that for women,” Peabody told TechCrunch earlier this year.

Finally, the wellness movement is taking over, driving VCs toward some odd upstarts. From wellness chat and journaling apps to therapy substitutes to fitness companies, stick wellness in a pitch and investors will take a second look. More Labs, for example, is backed with $8 million in VC funding. The company is readying the launch of Liquid Focus, a biohacking-beverage that claims to “solve modern-day stressors without the negative side effects.” Finally, Elements, “an elevated functional wellness beverage formulated with clinical levels of adaptogens to give your body exactly what it needs in four categories (focus, vitality, calm, and rest) for specific cognitive functions” (damn, what copy), recently launched. It doesn’t appear to be funded yet, but let’s just give it a few months.

There’s more where that came from, but I’m done for now. On to other news.

IPO Corner

I almost skipped IPO corner this week because no big-name companies dropped or amended their S-1s or completed a highly anticipated IPO, as has been the case basically every week of 2019. But I decided I better give a quick update on Luckin Coffee’s tough second week on the stock market. Luckin Coffee, if you aren’t familiar, is Starbucks’ Chinese rival. The company raised more than $550 million after pricing at $17 per share a little over a week ago. Immediately the stock skyrocketed 20 percent to a roughly $5 billion market cap; then came concerns of the company’s lofty valuation, major cash burn and uncertain path to profitability.  Luckin has dropped around 25 percent since closing its debut trading day. It closed Friday down 3 percent.

More changes at Y Combinator

Y Combinator, the popular accelerator program and investment firm announced this week that it has promoted longtime partner Geoff Ralston to president. This comes two months after former president Sam Altman stepped down to focus his efforts full-time on OpenAI. The promotion of Ralston is an unsurprising choice for YC, an organization that employs roughly 60 people, many of whom have been affiliated with it in one way or another for years.

M&A

Automattic acquires subscription payment company Prospress

Shopify quietly acquires Handshake, an e-commerce platform for B2B wholesale purchasing 

Streem buys Selerio in an effort to boost its AR conferencing tech

As Amex scoops up Resy, a look at its acquisition history 

Fundraising

The Los Angeles ecosystem is $76 million stronger this week as Fika Ventures, a seed-stage venture capital firm, announced its sophomore investment fund. Fika invests roughly half of its capital exclusively in startups headquartered in LA, with a particular fondness for B2B, enterprise and fintech companies. The firm was launched in 2017 by general partners Eva Ho and TX Zhuo, formerly of Susa Ventures and Karlin Ventures, respectively. The pair raised $41 million for the debut effort, opting to nearly double that number the second time around as a means to participate in more follow-on fundings.

Startup capital

DoorDash raises $600M at a $12.7B valuation
TransferWise completes $292M secondary round at a $3.5B valuation
Auth0 raises $103M, pushes its valuation over $1B
Canva gets $70M at a $2.5B valuation
Payment card startup Marqeta confirms $260M round at close to $2B valuation
Modsy scores $37M to virtually design your home
Sun Basket whips up $30M Series E
Zero raises $20M from NEA for a credit card that works like debit
Nigeria’s Gokada raises $5.3M for its motorcycle ride-hail biz

Extra Crunch

Our premium subscription service had another great week of interesting deep dives. This week, TechCrunch’s Lucas Matney went deep on Getaround’s acquisition of Drivy for his latest installment of The Exit, a new series at TechCrunch where we chat with VCs who were in the right place at the right time and made the right call on an investment that paid off. Here are some of the other Extra Crunch pieces that stood out this week:

Equity

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and I discuss how startups are avoiding IPOs and VC’s insatiable interest in food delivery startups.

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ARM halts Huawei relationship following US ban

The dominoes continue to fall for Huawei in the wake of a Trump-led U.S. trade ban. An internal memo from ARM lays out the chip giant’s decision to hit pause on “all active contracts, support entitlements, and any pending engagements,” per the BBC.

While based in Cambridge, England, the company believes itself to be impacted by the trade issue due to its use of technology originating in the States. The move is just another indication of how complex the issue of extracting U.S.-based technology from these devices will ultimately be. If upheld, many believe it could ultimately doom Huawei.

Huawei offered TechCrunch a fairly standard response to the news, once again chalking things up to politics. “We value our close relationships with our partners, but recognize the pressure some of them are under, as a result of politically motivated decisions,” it wrote. “We are confident this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world.”

Google was among the first to respond to Huawei’s inclusion on the U.S. Department of Commerce’s “Entity” trade blacklist, pulling support for Android. Other partners, including Microsoft, have remained largely silent on the matter.

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Mid-range flagships like the Honor 20 Pro are giving premium phones a run for their money

Phone sales have been trending downward for some time now. There are a number of reasons for this — many of which you can read about in this piece I published last week. The creeping cost of premium handsets is pretty high on that list, with flagships now routinely topping $1,000 from many of the big names.

The big smartphone makers have begun to react to this, with budget flagship alternatives like the iPhone XR, Galaxy S10e and Pixel 3a. A new crop of mid-range flagships, however, are giving them a run for their money and serving as an important reminder that a quality handset doesn’t need to be priced in the four digits.

The Honor 20 Pro fits nicely in the latter camp, joining the likes of the recently announced OnePlus 7 Pro and Asus ZenFone 6 in demonstrating that premium specs can still be had for what was once considered a reasonable flagship price.

Of course, before we get into specifics of pricing with the newly announced handset, it bears mentioning whether Honor, a brand owned by Huawei, will actually ever make it to the States. That’s all pretty complicated — like Donald Trump in a trade war with with China complicated. The pricing on the London-launched Pro version is €599, putting it at around $670.

The phone’s got Huawei’s latest and greatest Kirin 980 processor, coupled with a 6.26-inch display with hole-punch cutout and a quartet of rear-facing cameras. Those include a wide angle with 117-degree shots, 48-megapixel main, telephoto and a macro, which is an interesting addition to the standard array. The Pro’s out at some point in the June or July time frame.

Huawei bans aside, it will be interesting to see how this new crop of more affordable premium devices impacts the rest of the big names up top.

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Trump’s Huawei ban also causing tech shocks in Europe

The escalating U.S.-China trade war that’s seen Chinese tech giant Huawei slapped on a U.S. trade blacklist is causing ripples of shock across Europe too, as restrictions imposed on U.S. companies hit regional suppliers concerned they could face U.S. restrictions if they don’t ditch Huawei.

Reuters reports shares fell sharply today in three European chipmakers — Infineon Technologies, AMS and STMicroelectronics — after reports suggested some already had, or were about to, halt shipments to Huawei following the executive order barring U.S. firms from trading with the Chinese tech giant.

The interconnectedness of high-tech supply chains coupled with U.S. dominance of the sector and Huawei’s strong regional position as a supplier of cellular, IT and network kit in Europe suddenly makes political risk a fast-accelerating threat for EU technology companies, large and small.

On the small side is French startup Qwant, which competes with Google by offering a pro-privacy search engine. In recent months it has been hoping to leverage a European antitrust decision against Google  Android last year to get smartphones to market in Europe that preload its search engine, not Google’s.

Huawei was its intended first major partner for such devices. Though, prior to recent trade war developments, it was already facing difficulties related to price incentives Google included in reworked EU Android licensing terms.

Still, the U.S.-China trade war threatens to throw a far more existential spanner in European Commission efforts to reset the competitive planning field for smartphone services — certainly if Google’s response to Huawei’s blacklisting is to torch its supply of almost all Android-related services, per Reuters.

A key aim of the EU antitrust decision was intended to support the unbundling of popular Google services from Android so that device makers can try selling combinations that aren’t entirely Google-flavored — while still being able to offer enough “Google” to excite consumers (such as preloading the Play Store but with a different search and browser bundle instead of the usual Google + Chrome combo).

Yet if Google intends to limit Huawei’s access to such key services, there’s little chance of that.

(In a statement responding to the Reuters report Google suggested it’s still deciding how to proceed, with a spokesperson writing: “We are complying with the order and reviewing the implications. For users of our services, Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices.”)

Going on Google’s initial response, Qwant co-founder and CEO Eric Léandri told us he thinks Google has overreacted — even as he dubbed the U.S.-China trade war “world war III — economical war but it’s a world war for sure.”

“I really need to see exactly what President Trump has said about Huawei and how to work with them. Because I think maybe Google has overreacted. Because I haven’t [interpreted it] that way so I’m very surprised,” he told TechCrunch.

“If Huawei can be [blacklisted] what about the others?,” he added. “Because I would say 60% of the cell phone sales in Europe today are coming from China. Huawei or ZTE, OnePlus and the others — they are all under the same kind of risk.

“Even some of our European brands who are very small like Nokia… all of them are made in China, usually with partnership with these big cell phone manufacturers. So that means several things but one thing that I’m sure is we should not rely on one OS. It would be difficult to explain how the Play Store is not as important as the search in Android.”

Léandri also questioned whether Google’s response to the blacklisting will include instructing Huawei not to even use its search engine — a move that could impact its share of the smartphone search market.

“At the end of the day there is just one thing I can say because I’m just a search engine and a European one — I haven’t seen Google asking to not be by default in Huawei as search engine. If they can be in the Huawei by default as a search engine so I presume that everyone else can be there.”

Léandri said Qwant will be watching to see what Huawei’s next steps will be — such as whether it will decide to try offering devices with its own store baked in in Europe.

And indeed how China will react.

“We have to understand the result politically, globally, the European consequences. The European attitude. It’s not only American and China — the rest of the world exists,” he said.

“I have plan b, plan c, plan d, plan f. To be clear we are a startup — so we can have tonnes of plans, The only thing is right now is it’s too enormous.

“I know that they are the two giants in the tech field… but the rest of the world have some words today and let’s see how the European Commission will react, my government will react and some of us will react because it’s not only a small commercial problem right now. It’s a real political power demonstration and it’s global so I will not be more — I am nobody in all this. I do my job and I do my job well and I will use the maximum opportunity that I can find on the market.”

We’ve reached out to the Commission to ask how it intends to respond to escalating risks for European tech firms as Trump’s trade war steps up.

Also today, Reuters reports that the German Economy Minister is examining the impact of U.S. sanctions against Huawei on local companies.

But while a startup like Qwant waits to see what the next few months will bring — and how the landscape of the smartphone market might radically reconfigure in the face of sharply spiking political risk, a different European startup is hoping to catch some uplift: Finland-based Jolla steers development of a made-in-Europe Android alternative, called Sailfish OS.

It’s a very tiny player in a Google-dominated smartphone world. Yet could be positioned to make gains amid U.S. and Chinese tech clashes — which in turn risk making major platform pieces feel a whole lot less stable.

A made-in-Europe non-Google-led OS might gain more ground among risk averse governments and enterprises — as a sensible hedge against Trump-fueled global uncertainty.

“Sailfish OS, as a non-American, open-source based, secure mobile OS platform, is naturally an interesting option for different players — currently the interest is stronger among corporate and governmental customers and partners, as our product offering is clearly focused on this segment,” says Jolla co-founder and CEO Sami Pienimäki .

“Overall, there definitely has been increased interest towards Sailfish OS as a mobile OS platform in different parts of the world, partly triggered by the on-going political activity in many locations. We have also had clearly more discussions with e.g. Chinese device manufacturers, and Jolla has also recently started new corporate and governmental customer projects in Europe.”

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Google reportedly suspends select business with Huawei over U.S. ban

The Trump administration Huawei ban is sure to have wide-ranging and long lasting effects for all parties. In the meantime, it seems, a number of those involved in the periphery are treading lightly in hope of not burning bridges on either side. Google has taken accidental center stage, in its role providing Android and a variety of apps for the embattled handset maker.

According to a new report from Reuters, the U.S. software giant has taken some steps toward disentangling itself. Word comes from unnamed sources, who say the company has suspended all businesses with Huawei, aside from those covered by open-source licenses. The list appears to include updates to Android and popular apps like Gmail.

From the sound of it, Google is still attempting to wrap its head around how to proceed with the matter. Huawei, too, is assessing its options. Given the complexity of smartphone hardware and software, handsets routinely utilize components source from a variety of different locations. This fact has complicated things as trade tensions have begun to rise, hitting ZTE particularly hard over accusations that the company had violated U.S.-Iran sanctions.

Huawei has called the ban bad for all parties, but has continued to be defiant, noting its plans to become “self-reliant.” The company has no doubt been preparing for the seeming inevitability of heightened trade tensions, but its determination has some industry observers unconvinced that it can carry on with without any input from Google or U.S. chipmakers like Qualcomm.

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Huawei’s P30 Pro excels on the camera front

It’s been a month since Huawei unveiled its latest flagship device — the Huawei P30 Pro. I’ve played with the P30 and P30 Pro for a few weeks and I’ve been impressed with the camera system.

The P30 Pro is the successor to the P20 Pro and features improvements across the board. It could have been a truly remarkable phone, but some issues still hold it back compared to more traditional Android phones, such as the Google Pixel 3 or OnePlus 6T.

A flagship device

The P30 Pro is by far the most premium device in the P line. It features a gigantic 6.47-inch OLED display, a small teardrop notch near the top, an integrated fingerprint sensor in the display and a lot of cameras.

Before diving into the camera system, let’s talk about the overall feel of the device. Compared to last year’s P20 Pro, the company removed the fingerprint sensor at the bottom of the screen and made the notch smaller. The fingerprint sensor doesn’t perform as well as a dedicated fingerprint sensor, but it gets the job done.

It has become hard to differentiate smartphones based on design as it looks a lot like the OnePlus 6T or the Samsung Galaxy S10. The display features a 19.5:9 aspect ratio with a 2340×1080 resolution, and it is curved around the edges.

The result is a phone with gentle curves. The industrial design is less angular, even though the top and bottom edges of the device have been flattened. Huawei uses an aluminum frame and a glass with colorful gradients on the back of the device.

Unfortunately, the curved display doesn’t work so well in practice. If you open an app with a unified white background, such as Gmail, you can see some odd-looking shadows near the edges.

Below the surface, the P30 Pro uses a Kirin 980 system-on-a-chip. Huawei’s homemade chip performs well. To be honest, smartphones have been performing well for a few years now. It’s hard to complain about performance anymore.

The phone features a headphone jack, a 40W USB-C charging port and an impressive 4,200 mAh battery. For the first time, Huawei added wireless charging to the P series (up to 15W).

You can also charge another phone or an accessory with reverse wireless charging, just like on the Samsung Galaxy S10. Unfortunately, you have to manually activate the feature in the settings every time you want to use it.

Huawei has also removed the speaker grill at the top of the display. The company now vibrates the screen in order to turn the screen into a tiny speaker for your calls. In my experience, it works well.

While the phone ships with Android Pie, Huawei still puts a lot of software customization with its EMUI user interface. There are a dozen useless Huawei apps that probably make sense in China, but don’t necessarily need to be there if you use Google apps.

For instance, the HiCare app keeps sending me notifications. The onboarding process is also quite confusing as some screens refer to Huawei features while others refer to standard Android features. It definitely won’t be a good experience for non tech-savvy people.


(P30 Pro on the left, P30 on the right)

Four cameras to rule them all

The P20 Pro already had some great camera sensors and paved the way for night photos in recent Android devices. The P30 Pro camera system can be summed up in two words — more and better.

The P30 Pro now features not one, not two, not three but f-o-u-r sensors on the back of the device.

  • The main camera is a 40 MP 27mm sensor with an f/1.6 aperture and optical image stabilization.
  • There’s a 20 MP ultra-wide angle lens (16mm) with an f/2.2 aperture.
  • The 8 MP telephoto lens provides nearly 5x optical zoom compared to the main lens (125mm) with an f/3.4 aperture and optical image stabilization.
  • There’s a new time-of-flight sensor below the flash of the P30 Pro. The phone projects infrared light and captures the reflection with this new sensor.

It has become a sort of a meme already — yes, the zoom works incredibly well on the P30 Pro. In addition to packing a lot of megapixels in the main sensor, the company added a telephoto lens with a periscope design. The sensor features a mirror to beam the light at a right angle and put more layers of glass in the sensor without making the phone too thick.

The company also combines the main camera sensor with the telephoto sensor to let you capture photos with a 10x zoom with a hybrid digital-optical zoom.

Here’s a photo series with the wide angle lens, the normal lens, a 5x zoom and a 10x zoom:

And it works incredibly well in daylight. Unfortunately, you won’t be able to use the telephoto lens at night as it doesn’t perform as well as the main camera.

In addition to hardware improvements, Huawei has also worked on the algorithms that process your shots. Night mode performs incredibly well. You just have to hold your phone for 8 seconds so that it can capture as much light as possible. Here’s what it looks like in a completely dark room vs. an iPhone X:

Huawei has also improved HDR processing and portrait photos. That new time-of-flight sensor works well when it comes to distinguishing a face from the background for instance.

Once again, Huawei is a bit too heavy-handed with post-processing. If you use your camera with the Master AI setting, colors are too saturated. The grass appears much greener than it is in reality. Skin smoothing with the selfie camera still feels weird too. The phone also aggressively smoothes surfaces on dark shots.

When you pick a smartphone brand, you also pick a certain photography style. I’m not a fan of saturated photos, so Huawei’s bias toward unnatural colors doesn’t work in my favor.

But if you like extremely vivid shots with insanely good sensors the P30 Pro is for you. That array of lenses opens up a lot of possibilities and gives you more flexibility.

Fine prints

The P30 Pro isn’t available in the U.S. But the company has already covered the streets of major European cities with P30 Pro ads. It costs €999 ($1,130) for 128GB of storage — there are more expensive options with more storage.

Huawei also unveiled a smaller device — the P30. It’s always interesting to look at the compromises of the more affordable model.

On that front, there’s a lot to like about the P30. For €799 ($900) with 128GB, you get a solid phone. It has a 6.1-inch OLED display and shares a lot of specifications with its bigger version.

The P30 features the same system-on-a-chip, the same teardrop notch, the same fingerprint sensor in the display, the same screen resolution. Surprisingly, the P30 Pro doesn’t have a headphone jack while the P30 has one.

There are some things you won’t find on the P30, such as wireless charging or the curved display. While the edges of the device are slightly curved, the display itself is completely flat. And I think it looks better.

Cameras are slightly worse on the P30, and you won’t be able to zoom in as aggressively. Here’s the full rundown:

  • A 40 MP main sensor with an f/1.8 aperture and optical image stabilization.
  • A 16 MP ultra-wide angle lens with an f/2.2 aperture.
  • An 8 MP telephoto lens that should provide 3x optical zoom.
  • No time-of-flight sensor.

In the end, it really depends on what you’re looking for. The P30 Pro definitely has the best cameras of the P series. But the P30 is also an attractive phone for those looking for a smaller device.

Huawei has once again pushed the limits of what you can pack in a smartphone when it comes to cameras. While iOS and Android are more mature than ever, it’s fascinating to see that hardware improvements are not slowing down.

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UK gives Huawei an amber light to supply 5G

The U.K. government will allow Huawei to be a supplier for some non-core parts of the country’s 5G networks, despite concerns that the involvement of the Chinese telecoms vendor could pose a risk to national security. But it will be excluded from core parts of the networks, according to reports in national press.

The news of prime minister Theresa May’s decision made during a meeting of the National Security Council yesterday was reported earlier by The Telegraph. The newspaper said multiple ministers raised concerns about her approach — including the Home Secretary, Foreign Secretary, Defence Secretary, International Trade Secretary and International Development Secretary.

The FT reports that heavy constraints on Huawei’s involvement in U.K. 5G networks reflect the level of concern raised by ministers.

May’s decision to give an amber light to Huawei’s involvement in building next-gen 5G networks comes a month after a damning report by a U.K. oversight body set up to evaluate the Chinese company’s approach to security.

The fifth annual report by the Huawei Cyber Security Evaluation Centre Oversight Board blasted “serious and systematic defects” in its software engineering and cyber security competence.

Though the oversight board stopped short of calling for an outright ban — despite saying it could provide “only limited assurance that all risks to U.K. national security from Huawei’s involvement in the U.K.’s critical networks can be sufficiently mitigated long-term.”

But speaking at a cybersecurity conference in Brussels in February, Ciaran Martin, the CEO of the U.K.’s National Cyber Security Centre (NCSC), expressed confidence U.K. authorities can mitigate any risk posed by Huawei.

The NCSC is part of the domestic GCHQ signals intelligence agency.

Dr. Lukasz Olejnik, an independent cybersecurity advisor and research associate at the Center for Technology and Global Affairs at Oxford University, told TechCrunch he’s not surprised by the government’s decision to work with Huawei.

“It’s a message that was long-expected,” he said. “U.K. officials have been carefully sending signals in the previous months. In a sense, this makes us closer to the end of the 5G drama.”

“With proper management most risk can be mitigated. It all depends on the strategic planning,” he added.

“I believe the level of [security] responsibility at telecoms will remain similar to today’s. The main message expected by telecoms is clarity to enable them to move on with infrastructure.”

The heaviest international pressure to exclude the Chinese vendor from next-gen 5G networks has been coming from the U.S., where President Trump has been leaning on key intelligence-sharing allies to act on espionage fears and shut out Huawei — with some success.

Last year Australia and New Zealand both announced bans on Chinese kit vendors citing national security fears.

But in Europe governments appear to be leaning in another direction: toward managing and mitigating potential risks rather than shutting the door completely.

The European Commission has also eschewed pushing for a pan-EU ban — instead issuing recommendations encouraging member states to step up individual and collective attention on network security to mitigate potential risks.

It has warned too — and conversely — of the risk of fragmentation to its flagship “digital single market” project if member state governments decide to slam doors on their own. So, at the pan-EU level, security considerations are very clearly being weighed against strategic commercial imperatives and technology priorities.

Equally, individual European governments appear to have little appetite to throw a spanner in the 5G works, given the risk of being left lagging as cellular connectivity evolves and transforms — an upgrade that’s expected to fuel and underpin developments in artificial intelligence and big data analysis, among other myriad and much-hyped benefits.

In the U.K.’s case, national security concerns have been repeatedly brandished as justification for driving through domestic surveillance legislation so draconian that parts of it have later been unpicked by both U.K. and EU courts. Even if the same security concerns are here, where 5G networks are concerned, being deemed “manageable” — rather than grounds for a similarly draconian approach to technology procurement.

It’s not clear at this stage how extensively Huawei will be involved in supplying and building U.K. 5G networks.

The NCSC sent us the following statement in response to questions:

National Security Council discussions are confidential. Decisions from those meetings are made and announced at the appropriate time through the established processes.

The security and resilience of the UK’s telecoms networks is of paramount importance.

As part of our plans to provide world class digital connectivity, including 5G, we have conducted an evidence based review of the supply chain to ensure a diverse and secure supply base, now and into the future. This is a thorough review into a complex area and will report with its conclusions in due course.

“How ‘non-core’ will be defined is anyone’s guess but it would have to be clearly defined and publicly communicated,” Olejnik also told us. “I would assume this refers to government and military networks, but what about safety communication or industrial systems, such as that of power plants or railroad? That’s why we should expect more clarity.”

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