Huawei is determined though not to sell its mobile division, however, the company is preparing for difficult years. According to Japanese website Nikkei, cited by GSMArena, the Chinese tech giant has notified its component suppliers that it will produce far fewer phones than last year.
Huawei is said to order enough components for 70-80 million smartphones for the whole year. For comparison, last year the company produced 189 million of them, so this year it should be 60% less. Already these 189 million phones shipped represented a significant decrease compared to 2019, namely by more than 22%.
The product mix should also be affected, when fewer high-end models will be available. This is because the tech giant is unable to secure the components needed to produce 5G-enabled phones due to US government sanctions, so it will have to focus on 4G smartphones. That doesn't mean we won't see any 5G smartphones from it this year, however, according to anecdotal reports, it's already struggling to supply components for its upcoming flagship phones Huawei P50. This could lead to an even greater reduction in the total number of smartphones produced, reportedly down to 50 million.
In addition, Huawei cannot rely on the fact that the sanctions imposed on it by the White House will be lifted in the foreseeable future. The candidate for Secretary of Commerce in the emerging government of President Joe Biden, Gina Raimondová, made it known that she "sees no reason" to cancel them, as the company still poses a risk to national security.
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