Huawei will drastically reduce the number of phones made in 2021
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(Pocket Ribbon) – Chinese smartphone maker Huawei is reportedly telling suppliers that its smartphone orders will drop by about 60% this year, dropping phone calls from 189 million in 2020 to 70 million in 2021.
This massive drop is a direct result of sanctions against Huawei in the US, according to Nikkei Asia, who cited sources from multiple vendors, including a few who indicated that Huawei phone shipments could potentially drop to just 50 million units. Keep in mind that while Huawei's phones are popular around the world, they are no longer sold in the US as the company was essentially blacklisted and added to the US entity list in 2019.
Former President Donald Trump also signed an executive order banning Huawei over concerns over national security and ties to the Chinese government, which Huawei has denied. Google eventually blocked Huawei phones from future Android updates, and Huawei also had to stop rolling out 5G networks.
Rumor has it that Huawei is currently in talks to sell its P-series and Mate series smartphone brands, according to Reuters, which claimed talks started last September, just before Huawei confirmed in November that it would sell its affordable phone brand Honor.
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While the company has not yet made a final decision on whether it will definitely sell the phone brands as it plans to slash phone shipments in the new year, it can be assumed that Huawei has some big changes planned for the near future.
Huawei has yet to respond to a request for comment.
Written by Maggie Tillman.