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

Huawei’s 2020 smartphone production might fall dramaticallyfollowing thesanctions issued on the company last monthby the US government. That’s according to a new report fromTrendForce, which claims thatthe Chinese telecom giant’s annual smartphone production for 2020 might now hit only around 170 million unitsas 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,OppoandVivo. 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 iscurrently the largest smartphone vendorin 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’scontinuing actions against Huaweiandother 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 earlierpressured 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”.

Kishalaya Kundu

Passionate techie. Professional tech writer. Proud geek.

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