Credit: Robert Triggs / Android Authority
- Huawei is cutting its smartphone production in half.
- The company told suppliers that it plans to order significantly fewer smartphone components this year.
- Handset sales are expected to decline by more than 60%.
The fact that Huawei’s smartphone business is not doing so well is not new knowledge. The ongoing sanctions in the United States have hurt 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 devices.
According Nikkei Asia, Huawei 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 sold in 2020.
Some vendors expect Huawei to cut that number even further and order enough components for 50 million devices.
Huawei’s growing problems in the US
Huawei has seen a steady decline in smartphone sales since it lost the ability to add Google services to its phones. The United States government also dealt a severe blow to the brand by prohibiting it from importing American-made technology from non-American companies.
Ultimately, Huawei had to abandon its sub-brand honor in November last year. The company also lost its place on the list of the five largest smartphone manufacturers in the world.
Meanwhile, Huawei CEO Ren Zhengfei wants the United States to have an open policy towards Chinese companies. He asked the Biden government to reconsider the ban, but it does not look like relief will come anytime soon.
Huawei is currently preparing to launch its Mate X2 foldable phone next week. His prospects don’t look very promising because of the lack of Google services, but he could be successful in China for being Huawei’s stronghold.