Chinese telecommunications company Huawei Technologies on Monday dismissed the "unsubstantiated rumors" regarding the possible sale of its flagship smartphone brands, claiming that Huawei has no such plan.

"We remain fully committed to our smartphone business, and will continue to deliver world-leading products and experiences for consumers around the world," said the statement.

The reply is a denial of Reuters' report that Huawei is in early-stage talks to sell its premium smartphone brands P and Mate to a consortium backed by the Shanghai government.

Shipments of P and Mate Series phones were worth $39.7 billion between the third quarter of 2019 and the third quarter of 2020, according to market research company IDC. The two brands contributed nearly 40 percent to Huawei's total sales over the third quarter of 2020, according to market research firm Counterpoint, Reuters reported.

Worldwide smartphone market shares. (Screenshot of IDC)

IDC data also showed that the smartphone maker's worldwide market share has dropped from 20.2 percent in the second quarter of 2020 to 14.6 percent in the third quarter of 2020.

Huawei sold its sub-brand Honor in November 2020, saying its consumer business has been under tremendous pressure due to "a persistent unavailability of technical elements needed for its mobile phone business".