The price of Huawei’s flagship P30 Pro, which was priced from $1599 when it launched, has tumbled, with some retailers significantly lowering the cost they are prepared to pay customers for trade-ins.
UK outlet musicMagpie is offering Huawei owners just $183 to trade in a device considered to be in “good” condition.
Just weeks ago, customers were able to trade Huawei’s phones for $513, according to Forbes.
Meanwhile, the P30 Pro’s main competitor, the Samsung 10+, which retails for $1548, can be traded for $936, which is considerably more than the newer phone from Huawei.
“The market for used Huawei smartphones has taken a major hit,” the Straits Times from Singapore reported.
Owners of Huawei P20 devices are faring worse, with offers as low as $137 for old phones.
Huawei owners are being offered a mere $68 for handsets in “poor” condition and $13 for phones considered “faulty”.
“While a majority of mobile phone shops here said they are still buying used Huawei handsets, they are offering steeply lower prices for them. Some shops have stopped buying used Huawei products altogether,” the Straits Times reported.
“Customers, too, are staying away, with sales of used Huawei smartphones dropping sharply.”
Mr Ben Eu, owner of Kasia Mobile at Orchard Xchange, said: “We were selling 20 Huawei phones daily on average. Since the news broke, we are only doing around two to three per day.”
Last week Google announced it would comply with US Government restrictions meant to punish the Chinese tech powerhouse.
The Trump administration’s move, which effectively bars US firms from selling components and software to Huawei, ups the ante in a trade war between Washington and Beijing that partly reflects a struggle for global economic and technological dominance.
Google said basic services would still function on the Android operating system used in Huawei’s smartphones, and existing smartphone owners would not lose access to its Google Play app store or security features.
But the ban announced last week on all purchases of US technology is expected to badly hurt Huawei, analysts say.
But President Donald Trump, whose administration has singled out Chinese telecoms equipment maker Huawei as posing a threat to US national security, is suggesting he may be open to making it an issue in the stalled trade negotiations between the US and China.
Responding to a question from a reporter at the White House, Mr Trump said Huawei was “very dangerous”.
But he added, “If we made a deal, I can imagine Huawei being included in some form of a trade deal.”
Asked specifically what that would look like, he replied, “It would look very good for us, I can tell you that.”
The US-China trade dispute has festered after the Trump administration hiked tariffs on $250 billion in Chinese imports, and Beijing retaliated with increased tariffs on $60 billion in US goods.
As a result of US efforts to restrict commercial co-operation with Huawei, US allies and their companies increasingly have put co-operation with the Chinese giant on hold.
There are reports Huawei is developing its own operating system to replace Android, which will be released in October.
But it’s not yet clear what other Google software and services — such as maps, YouTube, Gmail or search — it will be able to use.
Huawei’s consumer business CEO Richard Yu told CNBC, “We are still committed to Microsoft Windows and Google Android. But if we cannot use that, Huawei will prepare the plan B to use our own OS.”