Huawei to drop 60% of its smartphone shipment in 2021

Huawei has recently told vendors that in 2021, smartphone component orders would decrease by about 60%. The fall in smartphone shipments from 189 million in 2020 to 70 million in 2021 is a result of sanctions against the Chinese smartphone producer in the US.

As it lacks U.S. government permission to import products for 5G models, the company’s smartphone orders have been restricted to those for 4G models. The number could be lowered to almost 50 million units, some of the suppliers indicated.

Back in May 2019, Google cut off Huawei phones from potential Android updates, and in several countries around the world, Huawei has been barred from developing 5G networks.

The event in China is expected on February 22nd where Huawei is in negotiations to sell its P series and Mate series. It is also expected that the company might announce a foldable Mate X2. Huawei delivered 32 million phones during the fourth quarter of 2020, IDC reported.

According to IDC report, last year the Chinese tech company dropped to No. 3 in the worldwide mobile market, behind Samsung Electronics and Apple.

In November, in an attempt to help Honor recover access to essential components subject to US constraints, Huawei sold the Honor budget brand to a group of more than 30 Chinese firms.

Honor says it has secured business partnerships, including AMD, Intel, MediaTek, Micron Technology, Microsoft, Qualcomm, Samsung, SK Hynix, and Sony.

There are also global semiconductor and component shortages that weigh on the smartphone sector of Huawei. There were expectations in China that US President Joe Biden, who would ease the hard-line stance of his predecessor to China’s trade, especially with respect to semiconductors and related equipment.