Huawei informed suppliers of key components of smartphones that they should expect to reduce orders for its components by up to 60%. This came in the wake of a U.S. ban that nearly damaged the company's smartphone business. 
Huawei recently hinted that it is not considering selling smartphones. But this may not be common, since the Chinese tech giant is clearly almost out of stocks of chips, and if there is no intervention from the new US administration, the company will soon run out of stocks completely.
Asian nikkei reports that the Chinese tech giant plans to order components for only 70-80 million handsets throughout the year. Although the US ban was in effect last year, Huawei shipped 189 million devices, which means the company expects a 60% cut in phone shipments this year. It should be noted that last year's shipment was very different from the 240 million Huawei phones shipped in 2019.
Plus, the telecom giant won't be releasing too many flagship models this year due to the inability to procure components for 5G phones. Instead, the company will release more 4G phones. However, we still expect to see a few 5G models like the Mate X2 and Huawei P50.
Unfortunately, we cannot say when Huawei's business will return to normal. The US Secretary of Commerce nominee told a Senate committee during the screening that she sees “no reason” to lift trade restrictions from Huawei, arguing that the company poses a national security risk.
Honor's business has already fallen victim to Huawei being forced to sell off. Could the current state of affairs force Huawei to sell its smartphone business? Let us know what you think in the comments section
