With the US crack down hard on Huawei intensifying, the effects of the recent sanctions have started to indicated, with a DigiTimes report revealing that the Chinese technical giant has slowed down its production of phones.
Amidst the stricter regulations being placed upon Huawei, the company has had to slow down its pace of orders from its smartphone ODMs. For these unaware, the US has been successful in cutting chip supply to the Chinese vendor. When the manufacturer lost TSMC like its primary cpu supplier, the US government Additionally amended its regulations to further more hamper its supply chain. Currently, Huawei can’t source tech that has originated from America, with no a special license being issued.
Being a primary player in the telephone market, this means that the manufacturer stands to lose a ton of grounds in the market share. In another words, we can expect other companies to fill in the void produced within the market. As stated by to sources close to a certain Chinese smartphone ODM, the company is reducing its orders to better cope with the intensifying pressure from the US Government.
Due to the fact Huawei lost Google support on its Android smartphones, the company has faced a decline in its different overseas markets. This means that China is currently its largest and most major market. So, the slowed pace of telephone output might noticeably hamper its smartphone income in the region in 2020. We could Additionally be expecting additional Chinese OEMs as Xiaomi, Oppo, and Vivo to get advantage of the situation.