Huawei will reduce the number of smartphones

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Huawei will reduce the number of smartphones

Huawei intends to cut production of smartphones due to sanctions. Reported by the Nikkei agency.

As it became known to the Nikkei correspondent, the Chinese corporation has already notified its suppliers that it plans to order components for 70-80 million units of smartphones. Sources in partner companies of Huawei told reporters about this. Thus, the number of smartphones released in 2021 will decrease by more than 60 percent – against 189 million units in 2020.

According to an insider report, the company will focus on manufacturing and releasing 4G smartphones. This is due to the fact that in the context of US sanctions, Huawei is experiencing difficulties in order to arrange the supply of components for phones with support for fifth generation. Some vendors said that the number of devices released could be reduced to 50 million units by the end of the year.

Journalists refer to the report of the IDC agency, according to which in 2020 the Chinese corporation dropped to third place in the global smartphone market. Huawei gave way to Samsung and Apple. According to analysts' forecast, in 2021 the company may lose even more positions due to US export restrictions.

In late January, it became known that Huawei could get rid of the flagship segment and sell the subsidiary brands P and Mate to other companies. Representatives of the corporation, to whom the journalists turned for comment, denied the fact of negotiations and the likelihood of a sale. Huawei has been under sanctions since May 2019 and had to sell its subsidiary Honor brand in November to free it from restrictions.

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