Recognition: Robert Triggs / Android Authority
- According to reports, Huawei is cutting its smartphone production in half.
- The company has told its suppliers that it plans to order significantly fewer smartphone components this year.
- Cell phone shipments are expected to decline by more than 60%.
The fact that Huawei’s smartphone business is not doing so well is not new knowledge. Ongoing US sanctions have crippled Huawei’s phone sales, and it looks like 2021 will be one of the worst years for the company when it comes to shipping new phones.
According to Nikkei AsiaHuawei has informed suppliers that it plans to order enough components for 70 to 80 million smartphones this year. That’s a decrease of more than 60% compared to the 189 million phones the company shipped in 2020.
Some providers expect Huawei to further reduce this number and order enough components for 50 million mobile phones.
Huawei’s growing problems in the US
Huawei saw a steady decline in smartphone sales as it was no longer able to add Google services to its phones. The US government also dealt a severe blow to the brand by banning the import of US-made technology from non-US companies.
Ultimately, Huawei had to give up its sub-brand Honor in November last year. The company also lost its place in the list of the top five smartphone manufacturers in the world.
In the meantime, Huawei CEO Ren Zhengfei wants the US to have an open policy towards Chinese companies. He urged the Biden government to reconsider the ban, but it doesn’t look like any relief is coming soon.
Currently, Huawei is preparing to launch its Mate X2 foldable phone next week. The outlook is not very promising due to the lack of Google services, but it could be successful in China as it is the stronghold of Huawei.