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Media reports have pointed out that Huawei's smartphone production has been cut down. These reports state that the company has suspended some production lines from one of its major suppliers, Foxconn.
Huawei flatly denies these reports.
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Hong Kong-based news agency, The South China Morning Post, stated "Foxconn, the Taiwanese electronics manufacturer that assembles handsets for many phone brands including Apple and Xiaomi, has stopped several production lines for Huawei phones in recent days as the Shenzhen company reduced orders for new phones."
No further information on whether the shut down was permanent or temporary was provided.
Huawei denies all comments against scaling back.
It took the company several days to pass any comment on the subject, and finally, an official company spokesperson has said "Huawei refutes these claims, our global production levels are normal, with no notable adjustments in either direction."
Huawei has been adorning headlines with its name spread across tabloids lately. One of the main reasons the company is receiving such attention comes after the U.S. blacklist on Huawei. The blacklist means that U.S. companies are not allowed to produce and sell Huawei parts, withdrawing a large support network for the Chinese company.
Huawei smartphone sales are dropping.
The first half of the year saw Huawei leading on its sales in comparison to Apple smartphones, however, this looks to drop over the rest of the year in general. As Zhao Ming, president of one of Huawei’s brands, acknowledged that Huawei's aim of catching Samsung by the end of 2020 was at risk. "As the new situation has emerged," he reportedly said, "it is too early to say whether we are able to achieve the goal."
There has been much speculation over Huawei's sales figures, and with most reports stating that sales are down, these new comments come as no real surprise.
The company still stands firm in its denial of scaling back production at Foxconn, but only time will truly tell if that is true.