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| Huawei will cut cell phone production by more than half in 2021 |
A report by Nikkei Asian Review stated that amid the continuing impact of US sanctions, Huawei has informed its suppliers that smartphone component orders will drop by more than 60% this year.
Huawei has made it clear to its suppliers that it plans to order enough components from 700 to 80 million smartphones this year.
This number is 60% lower than the 189 million smartphones the company sold last year, and a significant drop from the 240 million smartphones sold in 2019.
The company's component requirements are limited to the fourth generation models because the US government does not have permission to import components for the fifth generation models. Some sellers say the number could be brought down to close to 50 million.
The struggling Chinese tech giant ranked third in the global smartphone industry last year, behind Samsung and Apple. It is likely to lose more stocks this year due to US export restrictions.
In November 2020, Huawei sold its Honor trademark to a consortium of more than 30 Chinese companies to help Honor restore the US's restricted right to use key components.
Horner said he has re-established relationships with major vendors such as AMD, Intel, MediaTek, Micron, Microsoft, Qualcomm, Samsung, Sony and SK Hynix.
Although some Huawei vendors have obtained approval from the US Department of Commerce to ship parts, the company still lacks access to basic components for 5G models.
There are reports that the Chinese company may sell all of its cellular business, and in response to this question, the company's founder, Ren Zhengfei, told the media that he would never go this way.
A supplier said Huawei cannot purchase the necessary components and that the global shortage of semiconductors and components has also affected the Chinese company's smartphone business.
The Chinese are confident that US President Joe Biden (Joe Biden), who replaced Donald Trump last month, will soften his predecessor's hard-line stance on trade with China, including on semiconductors and related devices.
It now appears that the new administration is maintaining Trump's bellicose stance. US Trade Secretary candidate Gina Raymondo said: There is currently no reason to blacklist companies on the Treasury Entity List. Listed for reasons of national security or foreign policy.