With the US crack down hard on Huawei intensifying, the effects of the recent sanctions have started to prove, with a DigiTimes report exposing that the Chinese tech giant has slowed down its handiwork of smartphones.
Amidst the stricter regulations being placed upon Huawei, the company has had to sluggish down its pace of orders from its smartphone ODMs. For those unaware, the US has been successful in cutting cpu provide to the Chinese vendor. After the manufacturer lost TSMC as its primary chip supplier, the US government also amended its regulations to further hamper its provide chain. Presently, Huawei can’t source technology that has originated from America, with no a unique license being issued.
Being a major player in the smartphone market, this means that the company stands to lose a ton of grounds in the market share. In additional words, we can count on other companies to fill in the void created within the market. As claimed by to sources close to a Sure Chinese smartphone ODM, the company is reducing its orders to much better cope with the intensifying pressure from the US Government.
Since Huawei lost Google support on its Android smartphones, the manufacturer has faced a decline in its different overseas markets. This means that China is presently its largest and most major market. So, the slowed pace of telephone output could noticeably hamper its smartphone sales in the region in 2020. We could Furthermore be expecting additional Chinese OEMs like Xiaomi, Oppo, and Vivo to get advantage of the situation.