Earlier this year, Chinese smartphone OEM Huawei beat Samsung to become the largest smartphone vendor globally. However, just after Huawei managed to dethrone Samsung, things got worse for the company thanks to sanctions imposed by the US government.
The Trump administration put Huawei on Entity List last year, banning the company from conducting business with American organizations. At the time, Huawei managed to stay afloat, but more sanctions are being imposed with time, and pressure on the company is mounting.
Recently, TSMC announced that it has stopped taking orders from Huawei. As a result, Chinese news outlets are reporting that many consumer electronics products from Huawei are now out-of-stock at several locations, and there’s no inventory for popular models. Prices for used Huawei products are rising as well.
Popular smartphone series like Huawei P-series, Mate-series, and Nova-series have run out. With more sanctions being imposed, the company has no plan B to get out of this situation. Most of the doors for the company to manufacture its high-end Kirin chipsets and to procure chipsets from other companies like Qualcomm, MediaTek, Samsung, and others have also been closed.
Unfortunately, it looks like Huawei might have to increase its own capacity for manufacturing parts or look for alternatives in China, which could take time. Reportedly, the company is likely to focus on cars, mobile accessories, and LED screen drivers for the time being.