TROUBLED ELECTRONICS GIANT Huawei has dialled down the production of some of its phone models as the repercussions of the US trade war start to really bite.
According to multiple reports, manufacturer Foxconn was instructed to halt work on Huawei handsets until its future is confirmed. At present, Huawei has had its relationship with Google, The WiFi Association, Bluetooth SIG and the SD Association suspended, leaving very little to actually build.
Foxconn will, of course, be affected by the decision, but can at least boast several other high profile contracts with the likes of Google, Xiaomi and Apple.
It comes as Huawei admits for the first time that its plan to overtake Samsung as the world's biggest smartphone maker could be in jeopardy. Zhao Ming, current rotating president of Huawei said" "As the new situation has emerged, it is too early to say whether we are able to achieve the goal," referring to the self-imposed plan to hit the milestone by the end of 2020, just in time for John McAfee to eat his dinkle.
It's not known which handsets are on hold, or if it's a general slowdown. Either way, it speaks of a disastrous month for a company whose star appeared to be on the ascent but is yet to convince the public that it can make it through this killer blow.
Huawei is in the process of suing the US government, claiming the ban is unconstitutional and whilst it has been preparing Ark OS, an alternative to both Google and Windows, for some time, there's nowhere near enough clarity to buy a Huawei device with confidence right now.
Although Huawei has vast reserves and (depending on whom you believe) may also get subsidies from China (though let's be clear, it may not), its not clear how long the company can last as the order book starts to dwindle, which is a shame because their last three flagships have been competition-beating. μ
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