Huawei Plans To Cut Smartphone Production By 60 Percent This Year

Huawei Plans To Cut Smartphone Production By 60 Percent This Year

Chinese electronics giant Huawei has decided to cut the production of smartphones significantly. The company will drop production by over half in 2021. It has already conveyed to suppliers the latest decision. The decision to cut smartphone production could hit the supply of handsets. Huawei has said that it will drop production by almost 60 percent. There is no clarity on whether the company will trim the production of any specific Huawei smartphones. The decision has come just ahead of Huawei’s 2021 releases. The Chinese smartphone maker will soon launch its foldable smartphone. The new Mate X2 will feature an inward fold.

Huawei has told its suppliers that it has plans to order sufficient components for 70-80 million smartphones in 2021. Huawei in 2020 shipped 189 million handsets. This figure was 20 percent less than its 2019 sales. The company sold 189 million phones in 2019. Also, China’s overall smartphone sales declined in 2020. The country reported a 17 percent fall. This was the sharpest fall in the last three years. Huawei contributed 41 percent to the market share. This was the highest sales figure by any company. Another Chinese smartphone maker Xiaomi too reported a fall in the sales figure by 14 percent. Apple was the only brand to report positive growth in China. The new iPhone 12 series which offers 5G connectivity pushed the demand.

Meanwhile, Huawei is planning to venture into the gaming segment. The company is working on developing gaming notebooks. Besides, it is also planning to introduce a gaming console. The console will be called MateStation. It will be launched probably in the second quarter of 2021. Huawei is also likely to launch new laptops for gaming. The company was set to launch the new laptops in 2020, but it delayed it to 2021. The new laptops will hit the shelves ahead of the release of the console. Huawei has already launched its GameCenter gaming hub which seeks to bring mobile gaming communities together to offer high-quality content. It is available in 13 countries.

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