Things get tough, but Huawei gets going



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Consumers experience new 5G phones at a Huawei specialty store in Shanghai on November 28. Still struggling with a shortage of key 5G components, Huawei is struggling to increase sales of its products in addition to smartphones. [Photo by CHEN YUYU/FOR CHINA DAILY]

The designers at Huawei Technologies Co have been inspired by a species of salt-tolerant plant, Populus euphratica, commonly known as Euphrates poplar or desert poplar, found in the boundless, sparsely populated, and extremely inhospitable Gobi desert in the northwest China.

In the desert, rows of poplars sway silently. In autumn, its leaves sport a peculiar yellow hue that has prompted Huawei designers to add it to the design of the Mate 40 5G smartphone series, which was unveiled in late October.

“The desert poplar represents the spirit of the Chinese people, as they never give in to difficulties and always remain strong,” said Yu Chengdong, chief executive officer of Huawei’s consumer business group.

Yu may well have been referring to recent struggles by Huawei, a Chinese company, and its steadfast determination to move forward no matter what, even as it faces tough US crackdowns on its product sales and technologies.

Washington’s measures continue to restrict the company’s access to crucial 5G components. Undaunted, Huawei, it has been reported in the media, has resumed production of its 4G smartphones.

The reported production resumption came after US tech giant Qualcomm Inc confirmed that it had obtained a vendor license for various products, including some 4G products, to continue its shipments to Huawei.

Shanghai-based financial media outlet Yicai quoted a source from Huawei’s supply chain as saying that Huawei 4G smartphone orders are currently being placed in small batches, and these finished 4G phones are expected to be available in the market. market in the first half of next year, or in the first quarter at the earliest.

When contacted, Huawei did not respond to comments on the reported resumption of production. But sources familiar with the matter confirmed this, saying that although 5G chips are not yet freely available, the resumption of 4G smartphone production will help Huawei maintain its cooperation with existing retail partners in foreign markets such as Eastern Europe, Russia. , Middle East and Africa. where 4G products remain popular with consumers, despite the arrival of the 5G era.

The resumption of production may well mark a major milestone for struggling Huawei. It transferred its popular Honor brand to a consortium of more than 30 agents and distributors after facing a persistent lack of technical components necessary for its mobile phone business.

The Shenzhen-based company, which was once the world’s largest smartphone maker by shipments, lost the top spot to second in Q3 2020, according to market research company International Data Corp. .

In the July-September period, Huawei’s sales declined 22 percent year-on-year due to sluggish international markets and a more than 15 percent drop in China. The company continues to face challenges due to the increasing impact of US sanctions, which are affecting its performance even in China as the brand is trying to accelerate its shipments over a longer period, IDC said in a note. research. .

“Huawei cautiously managed its shipments across its product lines and reduced production of some popular models like the Mate 30 series. Its channel management and prioritization also resulted in a supply shortage in lower tier cities, delaying shipments. loyal customer purchases, “IDC said.

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