Huawei Cuts Smartphone Shipments by 20-30%:
Huawei has “decreased its forecast for smartphone shipments in the second half of 2019 by about 20%-30% from the original forcast,” according to a report in the Nikkei Asian Review that cited “a inside source familiar with Huawei smartphone orders.” The company has also “reduced or canceled orders to major suppliers for components that go into its smartphones and telecom equipment, cutting down shipments” according to the report. Some of the supply chain reductions “included cuts to orders of as much as 30%.”
This does not come as a surprise given that it is increasingly evident that the U.S. blacklist on Huawei’s supply chain is habing a faster impact on Hauweis bottom-line than anyone expected. Resulting in the Huawei Cuts being larger than normal. There have been many reports in recent days on the “devaluation” of Huawei’s smartphone market, including slower 5G equipment sales in the market. However, during an interview Huawei told the Nikkei that “its production levels remain normal,” and “sources close to the company downplayed the significance of the adjustments to its components orders.” despite the reported Huawei cuts.
Huawei held onto its number two spot for global smartphone sales in the first quarter of 2019 but is expected to struggle to hold off Apple, let alone make up ground on Samsung, through the remainder of the year. The company is in the midst of launch plans for its new Hongmeng OS, an alternative to Google’s Android OS which will be withheld from the company’s future smartphones under the U.S. blacklisting.