Huawei to cut phone production by more than half in 2021

Huawei to cut phone production by more than half in 2021

Notified a company Huawei has its suppliers that requests for components smart phones Its own will drop by more than 60 percent this year as US sanctions continue to affect, according to To report From the Nikkei Asian Review.

Huawei has made it clear to suppliers that it plans to order enough components for between 70 and 80 million smartphones this year.

This figure represents a 60 percent decrease from the 189 million smartphones the company shipped last year, and a significant decrease from the 240 million phones sold in 2019.

The company’s component requests were limited to the fourth generation models because it lacks the US government permission to import components for the fifth generation models, and some suppliers indicated that the number could be reduced to nearly 50 million units.

The beleaguered Chinese tech giant last year dropped to third in the global smartphone industry, behind Samsung and Apple, and is likely to lose more of its share this year amid US export restrictions.

In November 2020, Huawei sold its Honor brand to a consortium of more than 30 Chinese companies in an effort to help Honor regain access to key components and parts subject to US restrictions.

Honer says it has re-secured business relationships with major suppliers, including AMD, Intel, MediaTek, Micron, Microsoft, Qualcomm, Samsung, Sony and SK Hynix.

And while some Huawei suppliers have obtained permission from the US Department of Commerce to ship parts, the company still lacks access to basic components for its 5G models.

And there were news reports that the Chinese company might sell its mobile phone business completely, and in response to a question about this, the founder of the company, Ren Zhengfei, told a media: He would never take this path.

A supplier executive explained that Huawei was unable to purchase the necessary components, and the global shortage of semiconductors and components is also affecting the Chinese company’s smartphone business.

There were Chinese hopes that US President (Joe Biden), who succeeded Donald Trump last month, would moderate his predecessor’s hawkish approach to trade with China, including with regard to semiconductors and related equipment.

And it now appears that the new administration is heading to maintain Trump’s combat position, and Gina Raimondo, a candidate for the US Secretary of Commerce, said: It does not currently see a reason to remove the companies listed on the blacklist from the list of entities in the ministry because most of them are included in it for reasons related to national security or Foreign Policy.

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