Huawei has been in a decent spot ever because it was placed on the US Commerce Department’s Entity List in 2019. Though the corporate has made several efforts to outlive towards all odds, issues have come to the purpose that it has needed to promote a few of its belongings to remain afloat. For example, the corporate sold its budget-friendly sub-brand Honor to a consortium of brokers and sellers late final 12 months, and it’s reportedly in early-stage talks to sell its Mate and P series as brands. On prime of that, a latest report means that the corporate might also halve its smartphone manufacturing this 12 months to maintain prices low.
In accordance with Nikkei Asia, Huawei has notified its suppliers that its smartphone element orders might be reduce by greater than 60% this 12 months. The report cites sources from a number of suppliers, who’ve revealed that the corporate solely plans to order elements for 70 million to 80 million smartphones in 2021. That’s over a 60% decline from the 189 million Huawei smartphones shipped final 12 months. Just a few suppliers point out that the determine may probably fall to almost 50 million items.
The report additional reveals that Huawei’s orders are restricted to elements for 4G smartphones, because it lacks the US authorities’s permission to import elements for 5G units. Whereas Huawei hasn’t launched an official assertion on the matter, it’s fairly clear that the US restrictions are taking a toll on its international smartphone enterprise. Final 12 months, the corporate lost its second spot on the list of top smartphone manufacturers, and it could slip down even additional this 12 months. Except the US authorities eases sanctions on the corporate this 12 months, which appears unlikely, Huawei could also be pressured to exit the smartphone enterprise altogether within the close to future. We’ll replace this submit as quickly as we study of any additional developments.