Huawei Smartphone Shipments To Drop By Up To 60 % Due To US Ban
Last month, the United States government put Chinese telecom giant Huawei on an entity list which barred all American companies from doing business with it. Due to the decision, Huawei lost access to business with companies like Google, Microsoft and Intel. The former was the most important for its smartphone business, as it meant the company will not be able to provide software updates to its devices. It was expected that due to this decision, sales of the company’s handsets will reduce drastically. Now, a report claims Huawei will face a drop in smartphone shipments by up to 60% in 2019 in comparison to last year.
About the report
As mentioned above, Huawei is expected to face a dip in its smartphone shipments from 40 percent to 60 percent over last year if the ban continues. This dip in sales is claimed to last until the year 2021 starting when the company is expected to recuperate. The percentage might translate to a drop in shipments volumes ranging between 40 million and 60 million devices. Due to the loss in sales, Huawei may also be planning to stop all shipments of its latest Honor 20 series; which is supposed to go on sale in Europe starting the 21st June and is a flagship smartphone of its subsidiary Honor.
To counter the US inflicted ban, Huawei has been reported to be working on its operating system for a while. The new software may be based on Android and arrive without any Google services whatsoever. While the name of the OS is still a mystery; it is believed it will be called the HongMengOS in China and as the OakOS/ArkOS globally. Unfortunately, it is not known when Huawei will announce its latest operating system; but it is expected to be unveiled in the fall, which refers to the fourth quarter of the year.