Last year, US sanctions already cost Huawei Technologies the loss of the first place in the smartphone market, as a result, the Chinese giant slipped to third position, and the Honor brand set off on an independent voyage with new business owners. Huawei’s smartphone production program has been cut by 60% this year, and this is still an optimistic scenario.
As the Nikkei Asian Review found out through its channels, Huawei Technologies has notified component suppliers that it will cut orders this year to the number required to produce 70 million to 80 million smartphones. Huawei managed to ship 189 million smartphones last year, so the decline will be noticeable. Some sources expect production volumes to drop to 50 million units.
Huawei will be forced to focus on releasing 4G smartphones as sanctions prevent it from importing components for 5G devices. Huawei’s position in the smartphone market will continue to weaken, but the company’s founder recently announced that it will not give up this type of business under any circumstances. The situation is aggravated by the developing shortage of semiconductor components. Politically, hopes for a revision of the US stance on restricting Huawei are dwindling. The new American authorities see no reason to revise the foreign policy vector.
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