Huawei halts some production lines for its phones after US blacklist

It is uncertain if the decreased production is only temporary or an extended cut.

Huawei Source: Bloomberg

Taiwanese electronics manufacturer Foxconn has stopped some production lines for Huawei phones due to reduced orders for new phones from Huawei, people familiar with the matter told the South China Morning Post (SCMP).

The sources revealed the information on the condition of anonymity. It is uncertain if the decreased production is only temporary or an extended cut. Foxconn declined to comment on the article.

It is common for smartphone manufacturers to tailor their production schedules according to the orders in the near term to meet with projected demand.

At a media briefing on Friday night, Mr Zhao Ming, president of Honor, one of Huawei’s smartphone brands, said the parent brand is closely observing and evaluating the situation after the United States (US) government banned its firms from supplying to Huawei, the SCMP reported.

US chipmakers such as Intel, Broadcom and Qualcomm have reported told their employees not to supply to Huawei until further notice.

In a recent interview with Bloomberg on May 24, Huawei’s founder Ren Zhengfei said that the firm will find its own way to solve its supply chain problems. ‘We will maintain our existing supply chain and will continue to place orders with US companies. But if they can no longer supply us, the portion of our own in-house products will increase,’ he had said.

Mr Ren had called the measures taken by the US as ‘very extreme’. He questioned why a country is taking on a privately-owned firm and attacking it.

‘The US is so powerful, but why are they so scared of us? I think they overestimate Huawei. Such a small company, how come it’s been paid so much attention around the world? I’m excited that we have so much attention, but I think they exaggerate our role in the world,’ the Huawei founder said.

Huawei’s share of global smartphone shipments rose 15.7% in the first quarter of this year, an increase from the 10.5% rise a year ago, data from research house Gartner showed. Huawei lags slightly behind Samsung who currently helms the largest market share, at 19.2%. US’ Apple is the third-largest vendor globally, at a 11.9% share.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Explore the markets with our free course

Discover the range of markets you can spread bet on - and learn how they work - with IG Academy's online course.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.