According to Nikkei, Huawei Technologies has notified its suppliers that its orders for components for smartphones will fall by more than 60% this year. According to sources, Huawei planned to order enough components for 70 to 80 million smartphones in 2021.
Huawei saw its sales plummet in 2021 because of the severe restrictions imposed by US sanctions, so that the Chinese manufacturer is no longer even in the TOP 5 of smartphone sales. In total, Huawei reportedly sold 189 million smartphones in 2020, but would revise its objectives downwards for the year 2021.
This year, Huawei would have requested 60% less components from its suppliers, which will only allow it to produce around 70 to 80 million smartphones. According to some suppliers, these figures could be reduced to only 50 million units, because Huawei does not have permission from the US government to import 5G components.
Huawei wants to pressure the US government to ease sanctions
Regarding US sanctions, Huawei has not said its last word. Founder Ren Zhengfei would like to negotiate with Joe Biden, and has simply invited the US president to give him a call. AlthoughWe doubt the United States will reverse Donald Trump’s decisions about Huawei, this initiative is supported by various suppliers, who are actively trying to convince Joe Biden to ease the sanctions against the Chinese manufacturer.
For now, Huawei’s situation is so delicate that it was rumored that Huawei was intending to sell its smartphone division, but Huawei was quick to deny this information. The Chinese manufacturer intends more than ever to focus on its high-end smartphones.
In November, Huawei had made the decision to sell its subsidiary Honor to a consortium of more than 30 Chinese companies with the aim of helping Honor to once again be able to receive components from its suppliers to build smartphones. The new Honor V40, its first smartphone without Huawei, can even take advantage of Google Services unlike the Chinese giant’s smartphones. The Google Play Store would even be preinstalled on the European version.