Huawei to delay smartphone production as US measures threaten bottleneck
Huawei is said to have told some of its suppliers to halt production on its newest line of smartphones, as tough US sanctions threaten disruption.
Huawei has asked suppliers for some components of its upcoming Mate line of smartphones to delay production as it assesses the impact of tightening US export controls, sources told the Nikkei Asian Review.
The telecoms giant has also trimmed orders of parts for the coming quarters, they added. The Mate smartphone models — usually containing some of Huawei’s most advanced tech — are set to be launched in the second half of this year, coinciding with the launch of Apple’s latest iPhones.
Orders by the Trump administration in May is said to have left Huawei concerned that some of its non-US suppliers will be able to utilise US equipment and specifications to manufacture the components it needs.
One supplier told the Nikkei Asian Review that it expects the delay to mass-production schedules for the Mate smartphones to last for “at least one to two months”. Another said they had been told to put production on hold until further notice.
The launch event for the the smartphones may still go ahead as planned, with a delayed release timeframe for when customers will start receiving orders.
A Huawei spokesperson did not immediately provide comment.
Huawei, the world’s second largest smartphone maker, was added to Washington’s so-called entity list last year, restricting its access to US technology.
The firm lost support from Google’s Android operating system and access to products such as Google Maps in its phones as a result, denting international sales.
However the US is gradually lightening its stance on the matter, U-turning on a separate ruling yesterday to permit US suppliers to work with Huawei on next generation 5G standards.