- Huawei is reportedly cutting its smartphone production by half.
- The company has told suppliers that it plans to order a significantly lower number of smartphone components this year.
- Its handset shipments are expected to decline by more than 60%.
The fact that Huawei’s smartphone business isn’t doing so well is not new knowledge. Ongoing US sanctions have crippled Huawei’s phone sales, and it looks like 2021 is going to be one of the worst years for the company when it comes to shipping new handsets.
According to Nikkei Asia, Huawei has informed suppliers that it plans to order enough components for 70 to 80 million smartphones this year. That’s a drop of more than 60% compared to the 189 million phones the company shipped in 2020.
Some suppliers expect Huawei to further cut that number and order enough components for 50 million handsets.
Huawei’s growing US troubles
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 served a severe blow to the brand by banning it from importing US-made tech from non-US companies.
Meanwhile, Huawei’s CEO Ren Zhengfei wants the US to have an open policy regarding Chinese companies. He urged the Biden administration to reconsider the ban, but it doesn’t look like relief is coming anytime soon.
Currently, Huawei is preparing to launch its Mate X2 foldable phone next week. Its prospects don’t look very promising because of the lack of Google services, but it could succeed in China due to it being Huawei’s stronghold.