Credit: Robert Triggs / Android Government
- Huawei apparently cuts smartphone production by half.
- The company told vendors it plans to order a significantly lower number of smartphone components this year.
- The shipments of the devices are expected to decrease by more than 60%.
The fact that Huawei’s smartphone business is not doing so well is no new knowledge. Ongoing U.S. sanctions have paralyzed Huawei’s phone sales, and it looks like 2021 will be one of the worst years for the company when it comes to shipping new devices.
According to Nikkei Asia, Huawei has informed suppliers that they plan to order enough components for 70 to 80 million smartphones this year. This is a drop of more than 60% compared to the 189 million phones the company sent in 2020.
Some vendors expect Huawei to further reduce the number and order enough components for 50 million devices.
Huawei’s growing US problems
Huawei has seen a steady decline in smartphone sales since it lost the ability to add Google services to its phones. The US government also inflicted a severe blow on the brand by banning the import of technology from the US by non-US companies.
Finally, Huawei had to drop its sub-brand Honor in November last year. The company also lost its place in the list of the five best smartphone manufacturers worldwide.
Meanwhile, Huawei’s CEO Ren Zhengfei wants the US to have an open policy regarding Chinese companies. He urged the Biden government to reconsider the ban, but it does not look like there will be any relief soon.
Huawei is currently launching its Mate X2 foldable phone next week. Its prospects do not look very promising due to the lack of Google services, but it may succeed in China because it is Huawei’s stronghold.