Due to US Sanctions, «Huawei» will Reduce the Production of Smartphones by More than Two Times
OREANDA-NEWS. China's «Huawei Technologies» has warned it's component suppliers of a decline in orders of more than 60% this year under pressure from US sanctions, according to «Nikkei Asia». The company plans to order components for the production of 70-80 million smartphones, told several suppliers. Others noted, that this figure may be even lower – about 50 million.
In 2020, «Huawei» has released 189 million phones, according to the International Data Corporation (IDC). Production fell by 21.5% from the previous year. According to IDC calculations, the Chinese company last year ranked third in the world in terms of smartphone shipments after South Korea's «Samsung Electronics» and the US's «Apple».
At the same time, «Huawei» continues to produce models with 4G support, since it does not have a US government permit to import components for smartphones with the ability to support the new 5G cellular standard.
According to the research company «Gartner», «Huawei» in 2020 purchased chips worth just over $19 billion (a drop of 23.5% over the year), also taking the third position in the world market in this indicator. At the same time, «Samsung» and «Apple» increased purchases of semiconductors by more than 20%.
«Huawei», the world's largest manufacturer of telecommunications equipment, has become embroiled in a trade standoff between the United States and China. In May 2019, the United States put the company on the «black list», because, according to the American authorities, it was engaged in collecting intelligence information in favor of the Chinese government. The company has repeatedly denied these accusations. As a result, the activities of the company in the US market were significantly limited.
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