Although Huawei was on right track to become world’s biggest smartphone manufacturer, the company has faced rough times in the last couple of weeks due to US government’s recent trade war with China. Shortly after Google, Microsoft and ARM had cut ties with the Chinese company in last couple of days. As a result, the company is forced to reassess its smartphone business. Consequently, the company has now reduced the number of orders from its smartphone manufacturing partners.
In case you aren’t aware, recently, the Chinese tech giant was added to the United States’ ‘Entity List’ which means none of the US company or their associates can no longer work with the Chinese company. Google was first to follow the orders by cancelling Huawei’s Android license. Due to the ban, the company won’t be able to use any of Google’s products their smartphone. Shortly afterwards, a number of chipset manufacturers cancelled partnership with the smartphone manufacturer.
As a result, new reports out in China have claimed that the company is reconsidering its goals to become world’s largest smartphone manufacturer by the end of 2020. Moreover, the reports have revealed that the company’s production partner Foxconn has stopped smartphone production of different lines in last couple of days. While it’s unclear how long the cut will last, it’s likely that the company will come up with new approach sometime soon to resume the production.
At the moment however, the company hasn’t revealed the long-term plans due to the recent trade war. The company recently revealed that it had plans for such bans and might develop alternative to Android OS on its own.