Credit: Robert Triggs / Android Authority
- Huawei reportedly cuts its smartphone production by half.
- The company has told suppliers that they plan to order a significantly lower number of smartphone components this year.
- Handset shipments are expected to decrease by more than 60%.
The fact that Huawei’s smartphone business is not doing so well is not new knowledge. Ongoing US sanctions have ruined Huawei’s phone sales, and it looks like 2021 will be one of the worst years for the company in terms of sending new handsets.
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 decrease of more than 60% compared to 189 million phones the company sent in 2020.
Some vendors expect Huawei to further cut the number and order enough components for 50 million phones.
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 earned a severe blow to the brand by banning the import of US-made technology from non-US companies.
Finally, Huawei had to drop its sub-brand Honor in November last year. The company also lost its place on the list of the five best smartphone manufacturers globally.
Meanwhile, Huawei’s CEO Ren Zhengfei wants the United States to have an open policy on Chinese companies. He urged the Biden administration to reconsider the ban, but it does not appear that relief will come anytime soon.
Huawei is currently preparing to launch its Mate X2 folding phone next week. Its potential customers do not look very promising due to the lack of Google services, but it may succeed in China because it is Huawei’s stronghold.