Huawei reportedly scales back phone production, re-thinks over-taking Samsung


Huawei

Huawei founder earlier in his first reaction had earlier in May dismissed reports that the battle between it and Washington would be able to stifle his company’s global ambitions. The Chinese tech giant has since received several punches from U.S firms, and while many had expected its stockpiled inventory to sustain its smartphone and 5G networking equipment businesses for most of the rest of the year, a new report from industry source says the sanction is already having a great effect on the Chinese giant.

The firms has reportedly  reduced orders on new smartphones from a manufacturing partner, in turn stopping some production lines, while also thinking over most of its strategic goals. South China Morning Post has it that the Taiwanese technology manufacturer Foxconn has halted production lines for several Huawei phones following cuts in orders from the Chinese giant. Whether or not the measure is for the time being or it has come to stay has yet to be confirmed.

The report has yet to be verified, as both firms hasn’t  released any official response to the claims. If the report turn out treu, it could mean a big blow to the Taiwanese technology manufacturer Foxconn given that it recently increased it work force owing to a surge in demand for Huawei products.

There is currently no deal between China and U.S, and that means Huawei ordeal will subsist, and will have to to either dial back expectations or risk ending up with loads of unsold stock. President of Huawei’s Honor brand earlier last week hinted that the company is rethinking its goal of overtaking Samsung in 2020 as the World smartphone maker. That goal will definitely not come to fruition if  more US firms continue to particularly Google’s Android, Qualcomm and Intel continue to severe their relationship with the Chinese firm.

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