China's Huawei Technologies Co Ltd has cut or canceled orders to major suppliers for components that go into its smartphones and telecom equipment following its USA blacklisting, the Nikkei reported on Wednesday, citing sources familiar with the matter. Consumers are balking at higher phone prices. Last year, tensions reached a fevered pitch after the U.S issued an arrest warrant for Huawei Chief Financial Officer Meng Wanzhou, on charges related to breaching American sanctions against Iran, among other allegations.
The Huawei ban in the United States is taking a toll on this year's global smartphone shipments.
Foxconn is the largest producer not only for Huawei but for Apple.
It seems Huawei may be rethinking its ambition to be the leading smartphone manufacturer by 2020. Flex manufactures Huawei phones at its factories in China and India. This is not to say that China is uniquely bad; most countries, including in the West, have similar "give us what we want and don't you dare tell anyone" laws, including the UK. "I'm a primary candidate of the Kuomintang Party today".
Earlier this month, the Trump administration added Huawei to an "Entity List" that effectively stopped the telecommunications giant from doing business with US-based companies. The US publicly asked its allies to steer clear of using Huawei products over concerns that the equipment could be used by the Chinese government to obtain private information. A "majority" of products have since restarted.
But Chinese media found that the situation at Flex's Chinese factory is different. A recent report by Fubon Research and Strategy Analytics said Huawei's smartphone production could fall by as much as 24% in 2019 because of the U.S. ban.
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United Kingdom phone carriers have cut Huawei's flagship Mate 20 X 5G handset out of their launches, while a growing number of consumers have been trading in their Huawei phones. Some of Flex Zhuhai's workshops have closed since May 22, the witnesses said.
Huawei is reportedly considering selling off its undersea telecom cable business for an undisclosed sum of money.
Others were similarly concerned that China would simply build up its domestic technology industry so it doesn't have to rely on USA suppliers.
Since then, Google Inc. has restricted Huawei's access to its Android operating system and has limited access to its apps such as Gmail and the Google Play store in new handsets made by Huawei.
Consumers can't be guaranteed that Huawei phones, which run on Android, will have access to key apps and security patches after August 19, when a 90-day grace period under the USA export order ends.
According to a report from WinFuture, Huawei has registered this name in a number of patent filings across various regions. Bloomberg also quoted a telecom industry representative stating that sales of Huawei's premium smartphones fell 20 percent in the first week after the US administration announced its export ban.