Saturday, December 2, 2023

Huawei to reduce its 2021 phone production by half

Huawei decided to reduce its phone production by half in 2021, as the ban in progress in the United States harms the company’s smartphone sales.

Although Huawei smartphones are popular around the world, the Chinese company remains a pariah in countries like the United States, the United Kingdom, and Sweden, where the latter two have also banned the use of their equipment on their 5G networks.

However, The Chinese smartphone maker also witnessed a steady decline in its sales after it lost its ability to use Google services.

According to the president of Huawei, 2020 will be a “difficult” year for the company.

Furthermore, According to new reports from the Android Authority, Huawei has informed its suppliers that it plans to order components for 70 to 80 million devices this year, indicating a drop of more than 60 percent from 2020.

Whereas, Some vendors even expect the company to reduce those numbers even further.

The main concerns in the United States revolve around the company is too close to the Chinese government, which raises even more fears that Huawei’s equipment could be used for espionage purposes.

Therefore, companies were banned from using Huawei’s network equipment in 2012.

In addition, the company was added to the U.S. Department of Commerce’s list of Security and Industry Entities in May 2019, at the behest of Donald Trump. The then-president also extended those orders until 2021.

However, Huawei CEO Ren Zhengfei wants the United States to have an open policy towards Chinese companies and urges the Biden government to reconsider the ban.

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