14 DAY TRIAL // Chinese tech giant Huawei has recently reduced orders for its high-end smartphones, according to a new report, as the company expects declining demand in the coming months.
The United States government blacklisted Huawei in mid-May, banning the company from working with American firms and using their solutions for the development of new models.
While Huawei originally said it would be just fine without American products, the tech giant recently admitted it expects a drop of as much as 60 percent in foreign markets.
And according to a report from Digitimes, Huawei has now reduced orders for its flagships, once again as it expects shipments to go down in the coming months. The cited source claims orders for the other product categories, including entry-level and low-end smartphones with non-Kirin processors (not manufactured by Huawei).
The P30 series and the Mate 30 series are affected by the production cut, the report adds.
Increased focus on Chinese market
Meanwhile, Huawei hopes it can reduce reliance on American companies and is pushing hard to build more components in-house.
For example, Huawei wants to replace Android with its own operating system called Hongmeng. Several Chinese phone makers are already testing Hongmeng, and the first models running it are expected to go live in the home country this fall. The international launch of Hongmeng is believed to be planned for 2020.
Huawei wants to focus as much as possible on the Chinese market in order to counter the drop expected in foreign markets, albeit the company claims it would fully recover by the end of 2021.
“We didn’t expect the United States would so resolutely attack Huawei. We didn’t expect the United States would hit our supply chain in such a wide way – not only blocking the component supplies, but also our participation in international organisations,” Huawei Technologies cofounder Ren Zhengfei said. “We will be reborn by 2021.”