Nothing is going well with Huawei. Faced with the intensification of US sanctions against it, the Chinese giant has a series of setbacks. Huawei is starting to cut back on component orders for its production of smartphones, according to sources from manufacturing plants.
Will Donald Trump succeed in bringing down the giant Huawei? For the moment, its undermining work seems to be paying off. By prohibiting any company using American technologies to work with the Chinese giant, the American president has considerably weakened his enemy.
The consequences of this new decree are dramatic for Huawei: from now on, it is impossible to use chips incorporating American technologies. Also, the next Mate 40 will be the last smartphones to embed a Kirin chip manufactured by Hisilicon. In the face of this failure, many engineers left the ship, we learned last week.
A few days later, new sources indicated that the company was entering "A chaotic mode of survival" by putting pressure on its suppliers to deliver as many chips and components as possible for the manufacture of its smartphones. A critical situation that the manufacturer does not deign to comment for the moment.
Huawei slows smartphone production to better anticipate drop in sales
If the Chinese giant is silent, its suppliers and other partners do not hesitate to comment behind the scenes of this unprecedented affair. According to one of them, Huawei is reducing its component orders in anticipation of a production slowdown. According to Digitimes, the manufacturer anticipates the sales drops linked to US sanctions.
Indeed, if Huawei continues to record excellent sales figures, it can above all thank the Chinese consumers who, out of a sense of patriotism, have favored its models. But in Europe, Huawei's future looks bleak.
After the inability to use Google services, the Chinese giant will now have to find a solution to bypass the hardware restrictions. A much bigger challenge, almost impossible to meet. Unless Donald Trump softens his position by granting a temporary and targeted license (why not Qualcomm for example). But this hypothesis seems unrealistic in view of the relentlessness of the American president for several months now against Chinese companies.