Electronics manufacturer Huawei is said to have informed suppliers of smartphone parts that the company will produce 70 to 80 million smartphones this year. That is 60% less than in 2020 when Huawei sold 189 million mobile devices.
The reason for this decline, according to the Japanese business newspaper Nikkei Asia, is the trade ban imposed by former US President Donald Trump. Trump accused the Chinese electronics manufacturer of collaborating with the Chinese government and transferring personal data to Chinese state security. However, Huawei management and Chinese government spokesmen have always formally denied this.
It was hoped from China that new US President Joe Biden would lift the trade ban, but that doesn’t seem to be happening. For example, Gina Raimondo, one of the candidates for the post of deputy to the American Commission of Commerce, stated that she sees no reason to change the blacklist of companies for the time being.
Due to the trade ban, Huawei cannot purchase parts necessary for the production of smartphones that support 5G. Huawei can still purchase and import parts for smartphones that support 4G. Due to the trade ban, Huawei has ceased to be the largest smartphone company in the world since 2020, which the company must now hand over to South Korean Samsung.
To avoid further economic damage, the Chinese company is looking at alternative industries for which they can deploy and develop technologies. For example, Huawei would investigate whether it can use artificial intelligence in Chinese pig farms to increase production and efficiency.
According to a company spokesperson, this branch of industry is yet another example of how ICT technology can support traditional industries. It was also announced last month that Huawei will commit to digitally supporting Chinese mining. According to CEO Ren Zhengfei, Huawei’s efforts and technology should reduce the workforce, increase productivity and increase security.”