- Huawei has apparently decided to cut its smartphone production in half this year as on-going sanction in the United States cripple the company's smartphone sales.
Huawei has apparently decided to cut its smartphone production in half this year as on-going sanction in the United States cripple the company's smartphone sales.
While Huawei 's smartphones are popular all around the globe, the Chinese company remains a pariah in countries like the United States, UK and Sweden, where the later two have also banned the use of its equipment in their 5G networks.
The Chinese smartphone maker also witnessed a steady decline in its sales after it lost the ability to use Google services. According to Huawei's Chairman, 2020 will be a "difficult" year for the company.
According to new reports by the Android Authority, Huawei has informed its suppliers that it plans to order components for 70 to 80 million devices this year, which indicates a drop of more than 60 percent as compared to 2020.
Some suppliers even expect the company to further reduce these numbers.
The major concerns in the United States revolve around the company being too close to the Chinese government, which further gives birth to fears that Huawei's equipment could be used for spying purposes. Hence, companies were banned from using Huawei networking equipment in 2012.
Moreover, the company was included in the the US Department of Commerce's Bureau of Industry and Security Entity List in May 2019 on Donald Trump's order. The then-President also extended these orders until 2021.
Huawei's CEO Ren Zhengfei wants the United States to have an open policy regarding Chinese companies and urges the Biden administration to reconsider the ban.