Huawei Slash New Phone Orders By 30%
Chinese smartphone giant, Huawei, has reportedly slashed component orders for its new Mate 40 phone by 30%. The device is set to release internationally in coming weeks, and follows the loss of its Android license.
Commentators claim the order reflects decreased user demand (particularly from outside China) exacerbated by the financial impact of the COVID19 crisis.
Huawei has historically used the IFA trade show in Berlin to unveil its latest homegrown ‘Kirin’ processor. Despite the show’s in-person cancellation this year, Huawei did not use its virtual keynote to debut a new platform.
The Chinese tech giant’s online keynote was used to affirm its commitment to the European phone market, asserting it was not ‘backing down’ despite heightened trade tensions with the US.
In June, Huawei revealed it was hoping to sell around 8 million units of the new phone line-up, however, commentators remain cautious at this forecast given political uncertainty and supplier relations.
Last month, Huawei Chief Executive Richard Yu revealed the Mate 40 smartphones would use HiSilicon chips, but reports suggest the US government is blocking this. It comes as Qualcomm continues to lobby the Trump administration to allow it to sell chips to Huawei.
Latest numbers from Strategy Analytics forecasts the global smartphone market to shrunk 11% versus last year, following the economic impact of the coronavirus pandemic.