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HUAWEI reportedly cuts production for several phones (Update: HUAWEI refutes story)
Update, June 4, 2019 (2:27AM ET): Huawei has dismissed claims that it reduced production orders for several smartphones. The South China Morning Post cited an unnamed source for the claim, adding that it wasn’t clear whether this was a temporary measure or long-term plan.
“HUAWEI refutes these claims. Our global production levels are normal, with no notable adjustments in either direction,” the manufacturer’s representatives told Android Authority in an emailed response.
Manufacturers are indeed able to adjust production levels as they see fit, be it due to increased or reduced demand, or other factors. But this certainly seems like a pretty firm rebuttal, suggesting that it’s still business as usual for HUAWEI right now.
Original article, June 3, 2019 (1:24AM ET): Huawei is reportedly feeling the effects of being placed on the U.S. Entity List, which bans the use of hardware and software products from U.S. companies by the China-based smartphone maker. According to an unconfirmed news story, it’s believed HUAWEI has now shut down the production of several of its smartphones.
The news comes via the South China Morning Post, citing an unnamed source. It says that Foxconn, the Taiwan business that makes smartphones for a number of companies, has cut production for several HUAWEI handsets due to a request from the company. The specific HUAWEI smartphones were not mentioned in the article. The outlet adds that it’s not known whether HUAWEI’s move to reduce phone orders is just a temporary measure or part of a long term plan, as manufacturers are able to increase or decrease orders based on various conditions.
Zhao Ming, the president of HUAWEI’s sub-brand Honor, was asked about the reported cut in phone production at an HONOR 20 Pro launch event in China on Friday. He indicated that he was not aware of the situation, but also reportedly dodged questions about how the U.S. hardware and software ban has affected overseas HONOR sales.
HUAWEI previously had the goal of surpassing Samsung as the top smartphone manufacturer by the end of 2020. With the new U.S. parts and software ban, HONOR’s Zhao Ming now says it is “too early to say” whether or not it will achieve that goal.
Research firm Gartner stated earlier this year that HUAWEI had 15.7 percent of the smartphone market worldwide in the first quarter of 2019. That was good enough for second place, behind Samsung’s 19.2 percent. But between carriers refusing to stock HUAWEI devices and key companies cutting ties for now, it’ll be difficult to maintain momentum. We’ve contacted HUAWEI to confirm the story and will update the article accordingly if/when we receive a response.