According to the Forbes, Huawei has completely denied the information about cutting down the phone production line at Foxconn – the company's main assembly unit.
"Foxconn, a Taiwanese corporation specialized in assembling handsets for many brands including Apple and Xiaomi, has stopped some production lines with Huawei in recent days," the paper said. South China Morning Post reported on June 1st.
"Shenzhen-based company has reduced new phone orders." However, the article does not say this is temporary or permanent.
Huawei initially did not comment on the above information. But after a few days, a company spokesman said: "Huawei rejected these claims, our global production level is still normal. There are no noticeable adjustments in both directions ”.
|Inside an Huawei assembly plant in Dongguan, Guangdong, China. Image: SCMP.|
Information Huawei narrowed its production scale may be related to the fact that the company was put on a "black list" by the US government – causing many partners to provide components and software to stop supporting Chinese corporations.
At its peak, ARM, the chip-providing company for Huawei to manufacture the Kirin processor, announced it would stop cooperating on May 22. This has led to many arguments around the Android alternatives, the Play Store app store as well as the processor used for Huawei phones.
Huawei rose to No. 2, surpassing Apple in smartphone sales in the first quarter of the year. But it will be difficult for the company to maintain that position in the remaining quarters.
The article on SCMP quoted Zhao Ming, president of a subsidiary of Huawei, acknowledging the goal of defeating Samsung that Huawei poses is in trouble.
"When many new problems appear," Ming said. "It is too early to say if we will achieve our goal."
There have been recent speculations about the effects that the "black list" of the government has Donald Trump caused to Huawei, especially around the phone production issue.