Jakarta, Selular.ID – Huawei has made it clear that it will not sell its smartphone division, but maybe it won’t be easy. Companies must be prepared to experience difficult times in the future.
The Nikkei reports the telecommunications giant has instructed its component suppliers that they will make significantly fewer smartphones this year than in 2020.
Huawei is rumored to be ordering enough components for 70-80 million for the entire year. That translates to a 60% decrease from the 189 million units shipped last year, which is already a sizeable drop from the 240 million phones sold in 2019.
Product formulas will also change, moving away from the upscale. The reason is that Huawei cannot find the components needed to assemble a 5G device, so it must focus on 4G devices.
That’s not to say there won’t be a 5G smartphone this year, but other reports have revealed supply issues for the upcoming Huawei P50.
This could lead to an even bigger reduction in the total number of handsets assembled – to 50 million, according to several suppliers.
Honor does have broad access to critical components, so it may grow beyond its former parent company.
Earlier this month, candidate for Commerce Secretary to President Biden Gina Raimondo, said he saw no “reason” to lift trade restrictions from Huawei, stating that the company posed a risk to national security.
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