'CHINA'S PHONE MAKERS TAKE ON APPLE'

China's top smartphone makers are ready to challenge Apple Inc on its home turf after trouncing the  iPhone maker in its own market.

Huawei technologies Co and Xiaomi Corp are in talks with US wireless operators about selling flagship smartphones to American consumers as soon as next year, according to people familiar with the matter.

The handset makers are negotiating with carriers including AT&T Inc and Verizon communications Inc, said the people, asking not to be identified because the matter is private.

The talks are still fluid and and it is possible no agreements will materialise, they said.

Apple has a lot at stake in the US, where it is the leading smartphone maker.

In years past, it has been insulated from competition by strong support from carriers, which used to subsidise its expensive iPhones and lowered the upfront price for customers.

These subsidies or discounts have gone away, as carriers moved to phone financing that spreads the cost over two years.

Huawei has already tried selling its flagship Mate 9 phone in the US via e-commerce websites like Amazon.com, but working directly with wireless partners would give-

China's No.1 phone maker a wider presence across the country through retail stores, carrier websites and TV commercials.

Huawei is in talks to sell a flagship line via US carriers, but the Chinese company also plans to sell the Mate 10 device through e-commerce channels, the people said.

The Chinese handset makers are targeting the US market at an opportune time.

US carriers are cutting subsidies so consumers increasingly pay full price, in some cases more than US$1,000, for high-end phones.

Chinese rivals often sell phones for cheaper. Huawei's Mate 9 was on sale on Amazon.com for US$ 400 last Thursday.