With the US crack down hard on Huawei intensifying, the effects of the recent sanctions have started to prove, with a DigiTimes report revealing that the Chinese tech giant has slowed down its handcraft of phones.
Amidst the stricter regulations being placed upon Huawei, the manufacturer has had to slow down its pace of orders from its smartphone ODMs. For these unaware, the US has been successful in cutting cpu deliver to the Chinese vendor. After the manufacturer lost TSMC like its key cpu supplier, the US government Furthermore amended its regulations to further more hamper its provide chain. Now, Huawei can’t source technology that has originated from America, without having a unique license being issued.
Being a important player in the smartphone market, this means that the company stands to lose a ton of grounds in the market share. In other words, we can be expecting additional companies to fill in the void produced within the market. According 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.
Because Huawei lost Google support on its Android smartphones, the manufacturer has faced a decline in its various overseas markets. This means that China is currently its biggest and most important market. So, the slowed pace of telephone output may noticeably hamper its smartphone profits in the region in 2020. We could Furthermore expect another Chinese OEMs like Xiaomi, Oppo, and Vivo to get advantage of the situation.