Huawei to cut smartphone output by more than 50% in 2021: report
source link: https://www.itwire.com/mobility/huawei-to-cut-smartphone-output-by-more-than-50-in-2021-report.html
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
Friday, 19 February 2021 11:05
Huawei to cut smartphone output by more than 50% in 2021: report
By Sam VarghesePixabay
The number of Huawei smartphones manufactured this year will be between 70 million and 80 million units, the website Nikkei Asia reports, adding that this would be about a 60% decline from the 189 million units made in 2020.
The report said this sharp drop was due to the sanctions that the US has imposed on the company. It said the Chinese company had told its suppliers that it would be buying components only for this smaller number of smartphones.
Component orders had been limited to those for for 4G smartphones, Nikkei Asia said, with some suppliers indicating that the final number of units made in 2021 could even be as low as 50 million.
In May 2019. the US placed Huawei on its Entity List, an act that prevented it from obtaining US products without a licence from the Department of Commerce.
Huawei got around this by buying what it needed from branches of American firms in other countries. The only thing it could not source was the proprietary apps that come with Google's Android mobile operating system.
In May 2020, the US put in place further restrictions to cut off Huawei's supply of semiconductors which it gets made mostly by Taiwan Semiconductor Manufacturing Company.
This was done through the Foreign Direct Product Rule that makes it necessary for any company — American or foreign — that sells American products or those made using American technology to require a permit before selling to Huawei.
On top of that, new export control rules were imposed by the US Government in August and these made it well-nigh impossible for Huawei to obtain the SoCs it needs to build its flagship smartphones.
In January, Huawei had to scotch rumours that it was planning to sell its P and Mate flagship smartphone divisions, which would mean the company's exit from the premium smartphone business.
In November last year, Huawei sold its budget line of smartphones, known as Honor, to Shenzhen Zhixin New Information Technology, a new company formed by 30 dealers and agents, for an unspecified sum.
Nikkei Asia said while some Huawei suppliers had received permission from the US Department of Commerce to ship components to Huawei, the company was unable to obtain the full range of parts needed to make its 5G models.
iTWire has contacted Huawei Australia for comment.
Subscribe to ITWIRE UPDATE Newsletter here
GRAND OPENING OF THE ITWIRE SHOP
The much awaited iTWire Shop is now open to our readers.Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.
PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.
Products available for any country.
We hope you enjoy and find value in the much anticipated iTWire Shop.
INTRODUCING ITWIRE TV
iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.
In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.
We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.
See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.
Recommend
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK