Huawei shuts down smartphone production lines, report suggests

A recent report from China describes how Foxconn was forced to shut down several Huawei smartphone production lines due to order cuts.

A report from China, citing unnamed sources familiar with the matter, claims that Foxconn, the company that assembles many smartphones, including iPhones, has stopped several production lines dedicated for Huawei phones due to the Chinese company reducing its orders. The sources also added that it is unknown whether this decreased production is temporary or permanent, what devices it affects, and whether it’s a direct effect of the U.S. ban.

However, what is a direct effect of the U.S. ban is Huawei reassessing its goal to become the world’s number one smartphone manufacturer, as it publicly declared it wants to become by going after Samsung. The report cites Zhao Ming, president of Huawei sub-brand Honor:

As the new situation has emerged, it is too early to say whether we are able to achieve the goal

He also said that Huawei is closely observing and evaluating the status quo after the U.S. ban, which led to major companies like Google, Intel, Qualcomm, Xilinx and Broadcom to re-evaluate their working relationship with Huawei, and telling employees to no longer supply the Chinese manufacturer until further notice.

China could be preparing a blacklist of its own in response to the U.S., which, if put in place, would take this already critical Huawei situation to a whole new level.

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