More delays are being reported. This time, we’re learning about Huawei telling its suppliers to delay the production of its latest flagship phone. It’s not clear if it includes limiting of production of its current flagships. The Chinese OEM is believed to be weighing the possible disruptions as the US trade ban continues to escalate. The information we got from Nikkei Asian Review included Huawei asking to stop the production of parts for flagship phones. Orders for other components are being reviewed too or are being reduced.
The company is evaluating the impact of the US government’s export control that is greatly affecting Huawei and other firms that do business with it. It’s been over a year since Huawei started to lose its ties with American firms. The US government and the Commerce department have only been extending its license. The next premium flagship from Huawei is the Mate series and it looks like that one will be affected. It uses its own HiSilicon chip but there may be some problems.
Huawei has started to look for alternative suppliers and technologies. The Trump administration seems to be serious in further restricting companies that use US tech and equipment to supply to Huawei. The company is now forced to check its inventory of HiSilicon chips.
Huawei is said to be trying to balance production for next year. Huawei is also said to have asked suppliers to cut back on their orders by 20% but that has yet to be confirmed.
Production of the Huawei Mate series will be postponed for at least one to two months according to a company executive. Only production will be delayed. There is no word if the product launch will be delayed as well but it looks like it will go as scheduled. Huawei can always unveil new phones before market release.
