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Huawei Stops Smartphone Production After US Blacklist

In recent reports, Huawei is now stopping smartphone production to review its target as the world’s top smartphone vendor by 2020.

 

In recent times, the Chinese company worked tirelessly to become the world’s biggest smartphone vendor. This was in response to America adding them to a trade blacklist.

 

But according to a report by Chinese publication, South China Morning Post, Huawei has now stopped production of its smartphones. This came after they announced that their target was to become the world’s leading smartphone vendor by the end of next year.

 

The report explained that the halt was by Taiwanese electronics manufacturer, Foxconn. The company, which assembles handsets for major phone brands, reportedly did this due to reduced orders for new Huawei phones.

 

Zhao Ming, the president of Honor, a Huawei smartphone brand, spoke to reporters.

 

He said, “As the new situation has emerged, it is too early to say whether we are able to achieve the goal.” This followed his being asked how Huawei plans to outsell Samsung by the end of 2020.

 

 

In the first quarter of 2019, Huawei had an increase in sales of 15.7% from 10% in the year before. This was based on data from a research firm, Gartner.

 

Huawei already revealed that it was intensifying efforts to make its own smartphone operating system. This was in response to the Trump ban that was likely to take their products off the Android Operating System.

 

So far, the blacklist will restrict American companies from selling tech products and services without the US government’s approval. This move is already deepening the trade tension between China and America.

 

On 10th May 2019, Donald Trump ended formal negotiations with China. They also hiked the tariff on Chinese imports by 15%.

 

China subsequently responded by raising the tariff on $60 billion worth of American goods from the first day of this month.

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