With no certainty with respect to how long its current troubles will last, reports have surfaced about Huawei cutting down the production of new devices.
Foxconn, which is the production partner for several phone manufacturers, is said to have stopped several Huawei production lines according to a report by the South China Morning Post. The reason for this is because Huawei has reduced its orders as it doesn’t know how its future will turn out due to the US blacklist.
This not only affects Huawei greatly but also Foxconn as the production giant employed thousands of workers at the beginning of the year to meet Huawei’s production demand.
Huawei is also reconsidering its set goals, one of which is to overtake Samsung and take the crown of the world’s top phone manufacturer. President of Honor, Huawei’s subsidiary, Zhao Ming disclosed at a press conference in Shanghai on Friday that they are rethinking their goal of overtaking Samsung in 2020. When asked about its 2020 goal, the chief executive officer said: “As the new situation has emerged, it is too early to say whether we are able to achieve the goal”.
With Huawei and its subsidiary cut off from doing business with its American business partners, the Chinese giant will not be able to continue its growth spurt.
The Honor 20 and Honor 20 Pro launched last month in London but there is still no date for when they will be available for purchase. Both phones also launched in China just a few days ago. The Honor 20 is already available for purchase in its home country while the Pro version will go on sale on June 18.