Huawei Expects Smartphone Orders to Drop 60% to 70 Million

Urian B., Tech Times 19 February 2021, 01:02 am

China's Telecom Giant Faces Criminal Charges in the U.S. — (Photo : Photo by Kevin Frayer/Getty Images)) BEIJING, CHINA - JANUARY 29: A pedestrian talks on the phone while walking past a Huawei Technologies Co. store on January 29, 2019 in Beijing, China. The U.S. Justice Department filed a host of criminal charges against Chinese telecoms giant Huawei and its chief financial officer, Meng Wanzhou, including bank fraud, violating sanctions on Iran, and stealing robotic technology. Huawei denied committing any of the violations and rejected criminal claims against Meng, the daughter of Huawei founder Ren Zhengfei, who was arrested in Canada in December last year.

With a lot of buzz happening around Huawei ever since last year with the sanctions and other news, the Chinese tech giant is now reportedly expected to ship just 70 million phones this 2021. Huawei has reportedly told its suppliers that upcoming orders for its said smartphones will reportedly drop by about 60% this 2021.

Huawei expects drop in shipments

According to the story by CNet, The drop in what was noted as "expected phone shipments" will be from a whopping 189 million that the company had achieved back in 2020 all the way down to less than half which is just 70 million this 2021 due to the sanctions made against the Chinese smartphone maker over in the United States. This was reported by Nikkei last Thursday.

As a result of this, Google had then cut off its total Huawei phones from the future Android updates some time back in May of 2019 and Huawei has reportedly also been barred from being able to build new 5G networks in a number of countries all across the world. Huawei, which is now reportedly in talks of selling its said P series and also its Mate series phone brands, is actually still set to reveal a brand new Mate X2 this coming Feb22 over in China.

Huawei on the entity list

During the fourth quarter of last year, IDC noted that Huawei had shipped out just about 32 million phones across the world. This is in comparison to the 56 million phones that had been shipped during the same quarter of 2019.

Huawei's phones are noted to be largely popular all around the globe but are not sold in the United States. The company, however, was blacklisted back in 2019 when it was initially added to the United States entity list in this PDF.The order was essentially banning the company in light of certain national security concerns that the company had actual close ties with the said Chinese government. In an article by ZDnet, the company has reportedly denied the given charges.

Huawei and Xiaomi ban

According to another article from ZDnet, another Chinese hardware manufacturer known as Xiaomi has recently been added to a list of Chinese military companies. As a result of this, in recent weeks, it was noted that the said New York Stock Exchange has reportedly struggled to handle the actual consequences and the interpretation of the listing. It noted that it would actually delist the trio of these Chinese telcos before reportedly changing its ming, then proceeding with its original decision.

The delisting of three types of companies, China Telecom, China Mobile, and also the China Unicom Hong Kong was then taken to comply with the previous Nov 12 2020 executive order. The executive order reportedly forbids the trading as well as investing in any of the companies on the list as well as bans the trading of any of the new companies 60 days after the United States would label them.

This article is owned by Tech Times

Written by Urian Buenconsejo