Huawei Has Reportedly Stopped Producing Smartphones As A Result Of The US Ban

Aadhya Khatri - Jun 04, 2019, 6:30 am IST


Foxconn has stopped producing Huawei smartphones because of reduced orders. This is the latest updates after the US ban took effect

According to South China Morning Post, after Huawei announced that it wanted to become the world’s largest smartphone maker by 2020, it has reportedly stopped its phone production.

The report also said that Foxconn was the source of this halt. This company is a Taiwan-based manufacturer that makes handheld devices for many world-renowned smartphone brands like Xiaomi and Apple. It does that because of reduced orders for new smartphones.

Foxconn-stop-making-Huawei-smartphone
Foxconn has stopped producing Huawei devices

When asked about its ambitious plan to replace Samsung Electronics regarding total sales at the end of next year, Zhao Ming, Honor’s president, said that when the new situation arose, the company was not sure if it could meet the initial plan anymore. Honor is an emerging sub-brand of Huawei.

The news agency got the information from many people who have insight into this matter, but their names were not disclosed.

Huawei’s smartphone sales all over the world increased to 15.7% in Q1, 2019, rising from 10.5% at the same time last year. This data was released by Gartner, an industrial research company.

In response to President Donald Trump’s executive order that has led to a handful of US-based companies stopping doing business with Huawei, the Chinese phone manufacturer is working hard to develop its own operating system as well as an app store as replacements for Google’s product.

The blacklist means that Huawei can no longer buy software and hardware from US companies without permissions, which was a massive blow for the company as it is now unable to use Android and App Store on its devices.

This ban was a new height for the tension between China and the US.

US-China-trade-war
The executive ban was a new height for the tension between China and the US

On the 10th of May, Trump ordered a rise in tariff for Chinese imports, lifting it from 10% to 25%. In answer, China did a similar thing with US goods, raising tariffs on $60 billion, which took effect on the first of June. Before that, China's vice foreign minister said that the US was doing "naked economic terrorism,” but China was not afraid.