Huawei is expected to cut phone production by more than 50% in 2021

After learning that mass production for the Huawei P50 has already begun, we now discover more details about Huawei’s production in 2021. The news is not very good, the company will cut the production of phones by more than 50% this year. Where does the information come from and what are the implications in the lines that come.

Huawei has had a difficult situation since May 2019, when it was blacklisted by the Trump administration. Since then, it has struggled to find enough components, technologies and software for its mobile terminals. However, it has adapted and for a while it went well, and even in the spring of 2020 it became the largest telephone manufacturer in the world. On the other hand, in the fourth quarter of 2020 it had fallen to 6th place, after Vivo, according to IDC figures related to phone deliveries.

Returning to the title issue, Nikkei Asia writes that Huawei plans to order components for 70-80 million smartphones this year. The number is much lower than the 189 million phones sold by Huawei in 2020. Other sources make it clear that more than 50 million phones have been hacked. As an idea at the peak of Huawei’s growth, the company reached 240 million phones sold in 2019.

On the other hand, Huawei also sold the Honor branch, which in turn is responsible for tens of millions of units. At this rate, Honor could produce more phones than Huawei in a year or two. However, we look at these numbers with caution, because most are estimates and predictions, and Huawei would have ordered only a tranche of the necessary components in 2021. A vital thing is the attitude of the Biden regime towards the company and to what extent the sanctions will continue. The new Minister of Commerce, Gina Raimondo, did not give a 100% negative signal.

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On the other hand, it seems that Huawei is ready to get more involved in other segments to compensate the smartphone: TVs, even game consoles, the car industry, smart home gadgets, watches, headphones and much more.


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