Huawei has reportedly reduced its orders of new-handsets from its manufacturing partner Foxconn. The reduction in production is likely related to the restrictions placed on the Chinese company by the United States government.
Earlier this month, the Trump administration added Huawei to an “Entity List” that effectively stopped the telecommunications giant from doing business with US-based companies.
The listing means that Huawei can’t deal with major chip makers such as Intel and Qualcomm. It has also resulted in Google, the operator of the Android operating System from working with them.
According to a report in the South China Morning Post (SCMP), the Taiwanese manufacturer Foxconn has “stopped several production lines for Huawei phones in recent days”.
Huawei scales back world domination
It seems Huawei may be rethinking its ambition to be the leading smartphone manufacturer by 2020. Huawei has yet to confirm the reduction in orders and there is no confirmation that Foxconn orders were cut in direct response to the trade war or if this was part of a larger strategy.
Huawei had already crept past Apple during Q2 2018, to become the world’s second-biggest smartphone maker. It was an open secret that Huawei had sights on beating Samsung by 2020.
It is unclear exactly how much of a dent the restrictions from the U.S will affect Huawei in the long term.
In-house OS could save them
They have publicly appeared to be unphased by the announcements and have said they have plans to continue to manufacture phones. Huawei has announced it was already working on an in-house Operating System for its phones and devices that could replace Android.
The company filed a patent for its new operating system with the German Patent and Trademark Office (DPMA). The new system will reportedly be called “Ark OS.”
Earlier this month, Huawei Central reported the system will be able to accommodate Android developed applications; meaning its customers will have a smooth transition away from Android.
Chinese companies make plans to cut ties with the United States
The new operating system is expected to be launched between Spring of this year and by Fall 2020; but this is unconfirmed by Huawei. The United States is targeting several large Chinese tech firms as part of its escalating trade war with China.
The world's largest drone manufacturer, DJI, was threatened this month by an alert from the Department of Homeland Security that suggested that drones that are made in China may be sharing sensitive information beyond the companies.
Other phone makers that use Android may be considering alliances with Huawei or even thinking of developing their own OS as the U.S continues to flex its trade muscles.