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This is how bad Huawei’s phone situation is now obviously




Huawei has reportedly significantly reduced its 2021 smartphone production target. It suffers from US sanctions that show no signs of easing with the change of US president. The Chinese giant was on the rise with both Mate and Pro series flagship mobile phones and much more affordable fares for the budget market, but the US entity list stopped it.

Huawei’s registration with the Trump administration’s trade block registration meant that transactions with US companies were hampered. As a result, the company’s smartphone could not include Google apps and services such as access to Gmail, YouTube, and the Google Play store, blocking access to Huawei’s chips, modems, memory, and more.

Expectations from some quarters showed that the White House changes could ease some of the rules. However, President Biden’s administration has shown no signs of withdrawing the embargo. As a result, Huawei was forced to take some powerful steps, such as spinning Honor into an independent business and making its own independent transactions.

Still, according to Nikkei, expectations for production of Huawei phones in 2021 have dropped significantly. The company is said to have informed its suppliers that orders for smartphone components will drop by more than 60% this year, leaking insiders. Compared to the 189 million smartphones shipped in 2020, 70-80 million mobile phones are expected to be produced this year.

It wasn’t just the size of the order that was affected, but the type of phone that was covered. It is said that the demand for components is limited to what is needed for 4G phones, as 5G modems cannot be imported yet. Huawei was granted permission to import 4G modems from Qualcomm last November, but not the 5G version of an American chip maker.

Huawei declined to comment on the leak. This also suggests that orders could be reduced to about 50 million units. But this isn’t the first time I’ve heard of the company’s ominous forecasts for its telephone business. For example, in early January 2021, an independent study found that a Chinese company could only manufacture about 45 million devices.

Huawei is trying to find a workaround while protesting innocently in the blame of sanctions and its close involvement in the Chinese government’s security services. Rumor has it that Huawei’s strong denial of considering the sale of its flagship mobile phone brand puts further pressure on the mobile phone business with a combination of blacklisting and a global shortage of electronic components. It is assumed.

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