Huawei Interrupts Smartphone Production Chains After Blacklisting and Reporting Claims



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According to one report in the Morning of South China"Foxconn, the Taiwanese electronics manufacturer that badembles handsets for many brands of phones, including Apple and Xiaomi, has stopped several Huawei phone production lines in recent days, the Shenzhen company reducing the number of new orders phones. " The newspaper quoted "people familiar with the subject, who asked not to be named because the information is confidential."

Huawei has maintained its global number two position for smartphone sales in the first quarter of the year, but its goal of holding Apple and keeping it for the rest of the year, aside from catching the leader of the market, Samsung, seems lost.

Earlier this month, & nbsp;IDC reported that "thim only [Q1] culmination point of view of the provider was Huawei … who It became the only smartphone provider at the top of the market to have seen its volumes grow during the first quarter of year 19. Impressively, the company has grown year-on-year by 50.3% in 1Q19 with volumes of 59.1 million units and a market share of 19.0%. Huawei is now at the fingertips of Samsung at the top of the global market. "

The company was aiming to catch Samsung by the end of next year. "While the new situation has emerged, it is too early to tell if we are able to achieve this goal," Zhao Ming, president of one of Huawei's brands, told reporters at a launching new Honor devices in China. "All the difficulties make us stronger, no matter the mentality or the action," he added.

Outside of China, there has been much speculation about the impact on sales and prices of new phones as well as recovery values ​​since the announcement of the US blacklist. Most reports indicate that sales are down and recovery prices have fallen significantly, making upgrades more difficult for existing users. In the UK, the company also saw its flagship 5G devices taken from the country's first network launches.

Huawei would have & nbsp; endured problems of a different kind in Hong Kong, where local media claimed that Huawei users' "scores" saw their & nbsp; smartphones "recent malfunction, sudden stop and unusable. "According to reports, this was following an update of the operating system during the week.The media reported that" Huawei did not have an immediate solution – customers could reinstall the phone system, but that would erase all data from the phone. "

Unsurprisingly, attention turned to US sanctions against the company, which led Google to remove Android support for future smartphone models. This should not, however, affect existing phones. the Asia Times & nbsp;reported Francis Fong, Honorary Chairman of the Hong Kong Federation of Information Technology, said the situation was strange in that it involved different handset models, and he suspected that this could lead to security in the updated file sent to the Android handset. "

The Hong Kong news is almost certainly a clumsy coincidence. There is no reason to believe that existing Huawei smartphones should no longer function properly as a result of the sanctions imposed by the United States. But for the company, the stories around prices and sales figures and user experiences will multiply until the situation is resolved. And in a rapidly changing consumer market, it's almost impossible to manage.

Huawei is counting on China to find a solution before too much market share erodes. Friday in Beijing ad a "nlist of reliable entities "in direct response to US sanctions, targeting US companies that have withdrawn their support of Huawei. & nbsp;"FForeign companies, organizations or individuals that do not comply with market rules, derogate from the spirit of the contract, blockade or terminate the supply of Chinese enterprises for non-commercial purposes, and seriously undermine the legitimate rights and interests of Chinese enterprises. a list of "unreliable entities," said a government spokesman in Beijing.

The current expectation of the badaulted manufacturer is that US President Trump is conjuring up concessions of timely trade talks, in which Huawei's situation is expected to become an important bargaining point.

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According to a report in the Morning of South China"Foxconn, the Taiwanese electronics manufacturer that badembles handsets for many brands of phones, including Apple and Xiaomi, has stopped several Huawei phone production lines in recent days, the Shenzhen company reducing the number of orders for new phones . " The newspaper quoted "people familiar with the subject, who asked not to be named because the information is confidential".

Huawei has maintained its global number two position for smartphone sales in the first quarter of the year, but its goal of holding Apple and keeping it for the rest of the year, aside from catching the leader of the market, Samsung, seems lost.

Earlier this month, IDC reported that "thim only [Q1] culmination point of view of the provider was Huawei … who It became the only smartphone provider at the top of the market to have seen its volumes grow during the first quarter of year 19. Impressively, the company has grown year-on-year by 50.3% in 1Q19 with volumes of 59.1 million units and a market share of 19.0%. Huawei is now at the striking distance of Samsung, at the top of the global market. "

The company was aiming to catch Samsung by the end of next year. "While the new situation has emerged, it is too early to say if we are able to achieve this goal," Zhao Ming, president of one of Huawei's brands, told reporters at the press. A Chinese launch event of new Honor appliances. we stronger, no matter the mentality or the action, "he added.

Outside of China, there has been much speculation about the impact on sales and prices of new phones as well as recovery values ​​since the announcement of the US blacklist. Most reports indicate that sales are down and recovery prices have fallen significantly, making upgrades more difficult for existing users. In the UK, the company also saw its flagship 5G devices taken from the country's first network launches.

Huawei would have had problems of a different kind in Hong Kong, where local media claimed that "many" Huawei users had seen their smartphones "recent malfunction, sudden stop and unusable. "According to reports, this follows an update of the operating system during the week." The media reported that "Huawei did not have an immediate solution – customers could reinstall the phone system, but this would erase all data on the phone. "

Unsurprisingly, attention turned to US sanctions against the company, which led Google to remove Android support for future smartphone models. This should not, however, have an impact on existing phones. the Asia Times Francis Fong, Honorary Chairman of the Hong Kong Federation of Information Technologies, said the situation was strange in that it involved different handset models, and he suspected that this could involve security issues in the updated file sent to the Android handset. "

The Hong Kong news is almost certainly a clumsy coincidence. There is no reason to believe that existing Huawei smartphones should no longer function properly as a result of the sanctions imposed by the United States. But for the company, the stories around prices and sales figures and user experiences will multiply until the situation is resolved. And in a rapidly changing consumer market, it's almost impossible to manage.

Huawei is counting on China to find a solution before too much market share erodes. Friday, Beijing announced a "nlist of reliable entities "in direct response to US sanctions, targeting US companies that have withdrawn their support from Huawei. "FForeign companies, organizations or individuals that do not comply with market rules, derogate from the spirit of the contract, blockade or terminate the supply of Chinese enterprises for non-commercial purposes, and seriously undermine the legitimate rights and interests of Chinese enterprises. a list of "unreliable entities," said a government spokesman in Beijing.

The current expectation of the badaulted manufacturer is that US President Trump is conjuring up concessions of timely trade talks, in which Huawei's situation is expected to become an important bargaining point.

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