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Huawei scales back production of some smartphones, says report [Update]

It's the clearest yet sign that the U.S. blacklist has stymied the company's smartphone business

As a result of its ongoing dispute with the U.S. government, Huawei has cut production orders for its smartphones, according to a new report from the South China Morning Post.

Citing unnamed sources within Taiwanese manufacturer Foxconn, which assembles devices for Huawei, as well as Apple and other U.S. consumer electronics brands, the South China Morning Post writes that Huawei has reduced orders for several of its smartphone models.

The move comes after U.S. President Donald Trump issued an executive order in mid-May that prevented U.S. companies from providing their tech to Huawei. In the aftermath of the state of emergency, Google barred Huawei from accessing existing proprietary applications and any future versions of its Android mobile operating system.

Before its blacklisting, Huawei had hoped to surpass Samsung as the best-selling smartphone manufacturer in the world by 2020. The company is now re-evaluating that goal, according to a statement from Zhao Ming, president of Huawei flanker brand Honor.

“As the new situation has emerged, it is too early to say whether we are able to achieve the goal,” Zhao said in reference to a question about the company’s ability to surpass Samsung.

If you own a Huawei phone and are unsure what the future holds, MobileSyrup‘s Shruti Shekar wrote an explainer on what to expect from Huawei as it attempts to navigate its dispute with the U.S.

Update: Huwaei Canada sent us a statement on this report, noting “Huawei refutes these claims. Our global production levels are normal, with no notable adjustments in either direction.”

Source: South China Morning Post

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