Huawei Smartphone Production to Decline 30% Due to US Sanctions: Report

Huawei US website

Huawei’s 2020 smartphone production might fall dramatically following the sanctions issued on the company last month by the US government. That’s according to a new report from TrendForce, which claims that the Chinese telecom giant’s annual smartphone production for 2020 might now hit only around 170 million units as opposed to an earlier projection of 190 million units. The latest US sanctions on Huawei went into effect September 15th.

The report further states that the biggest beneficiaries of Huawei’s misfortunes might be fellow Chinese smartphone makers, Xiaomi, Oppo and Vivo. All three companies are said to be increasing their production targets while “aggressively stocking up on components” in order to capture more market share in case the sanctions stay in place in the coming year. Xiaomi has reportedly been the most aggressive in procuring components, followed closely by Oppo.

Chart Courtesy: TrendForce

In spite of all its trials and tribulations, Huawei is still expected to maintain a 14% global smartphone market share in 2020, while the market shares of Xiaomi, Oppo and Vivo this year are projected to reach 12%, 11% and 9%, respectively. Huawei is currently the largest smartphone vendor in the world, having surpassed Samsung earlier this year. According to Canalys, the company shipped 55.8 million smartphones in the second quarter of this year, with Samsung coming in at number two with 53.7 million units.

As part of the Trump administration’s continuing actions against Huawei and other Chinese tech firms, the US government, last month, announced new restrictions on Huawei to prevent the Chinese telecom giant from accessing technology produced by US companies. The administration had earlier pressured Taiwan’s TSMC, into stopping the manufacturing of Huawei’s Kirin chipsets in a move described by the company’s consumer business CEO, Richard Yu, as “a huge loss for Huawei”.

VIA GizmoChina
SOURCE TrendForce
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