According to several huawei suppliers, Huawei has cut its 2021 cell phone orders by 60%, and the orders are limited to 4G components.
Taiwan‘s “Free Finance” quoted the “Nihon Keizai Shimbun” as reporting on Feb. 18 that several Huawei suppliers have revealed that they have received notification from Huawei that it will cut back on the number of smartphone orders this year.
Huawei plans to order between 70 million and 80 million smartphone components, which is a 60 percent drop from the 189 million smartphones to be shipped in 2020, the suppliers said. In addition, Huawei’s orders are limited to 4G parts because it can’t get a license from the U.S. government to import parts for 5G models.
With U.S. sanctions continuing to fester, some suppliers believe the number of Huawei phone orders could drop to 50 million units, the report said.
According to IDC data, the troubled Huawei ranked third in the global smartphone industry last year, behind Samsung Electronics and Apple, and now due to U.S. export restrictions, Huawei’s cell phone industry ranking this year fears continued to be impacted.
To avoid U.S. sanctions, Huawei has taken a break-the-tail approach, selling the Honor brand to a consortium of more than 30 Chinese companies last November in a bid to give Honor back access to key components restricted by the U.S. after severing its ties with Huawei.
According to Honor, it has now resumed business relationships with key suppliers, which include AMD, Intel, MediaTek, Micron Technology, Microsoft, Qualcomm, Samsung, SK Hynix and Sony, and launched its V405G smartphone in January.
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