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Huawei slashes its smartphone production after US ban [Update: Huawei responds]

Sub-brand Honor expresses wariness

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By now, the Huawei controversy is dying down. After the initial shock, all parties are working on a solution. For one, Huawei is already hunting for feasible alternatives including its own non-Android operating system. At face value, the Chinese company doesn’t seem fazed by today’s circumstances. Ren Zhengfei, Huawei’s founder, has even issued optimistic statements regarding his company’s future.

However, a new report has suggested a more pessimistic outlook. According to the South China Morning Post, Huawei is cutting down its smartphone production lines. As with other smartphone makers, the company hires Foxconn to manufacture a good chunk of its supply. Reportedly, Huawei has reduced the supplier’s production lines within the past few days.

Ironically, Huawei ordered more production lines early this year. Previously, the world’s second-best smartphone brand enjoyed a surge of demand from the successful Mate 20 series. Naturally, the recent ban has changed the landscape of Huawei’s future.

Neither Huawei nor Foxconn have issued statements regarding the reported supply reduction. No one knows if the reduction is permanent or temporary. If anything, Huawei remains confident about its own future.

However, Huawei’s sub-brand Honor has expressed differing emotions. According to the same report, Honor president Zhao Ming confirms Huawei’s wariness. Currently, Huawei aims to overtake Samsung as the world’s best smartphone brand by 2020. Now, the company is reevaluating its position given the circumstances, according to the Honor boss.

Unsurprisingly, Huawei’s demand sharply fell following Trump’s ban. Users have started disposing their handsets at resellers. Likewise, Foxconn’s move is warranted. Until Huawei finds an adequate solution, the world isn’t clamoring for more Huawei phones.

Update (6/3/2019): Soon after this article’s publication, Huawei issued a statement regarding the issue. The company is vehemently denying the rumor.

“Recent media reports are propagating a rumor that Huawei is cutting back production of smartphones. Huawei refutes these claims. Our global production levels are normal, with no notable adjustments in either direction.”

Foxconn still hasn’t issued its own statement. As indicated in the original report, Huawei’s supposed reduction comes from Foxconn’s production lines.

SEE ALSO: Huawei P30 Pro: Rewriting the rules, again

Enterprise

OPPO wants to build its own chipsets, hires talent from MediaTek

Also trying to tap Qualcomm and Huawei talent

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In the last few years, the US war against Huawei has ramped up considerably with no end in sight. However, though the crackdown was against only a few Chinese companies, other seemingly innocent companies have found themselves just as affected as Huawei. For one, American companies, like Google and Qualcomm, have to deal with the loss of a valued client. On the other side of the Pacific, other Chinese companies are also feeling the heat from Huawei’s troubles.

For example, OPPO has started developing its own processors in the wake of Huawei’s chip problem. Last year, the Chinese company filed a new trademark — named the OPPO M1 — through the European Union Intellectual Property Office, according to LetsGoDigital. Presumably, the new property corresponded to an upcoming in-house processor. However, the M1 has since faded into oblivion.

Today, according to Nikkei Asian Review, OPPO has not abandoned its processor project. In fact, the company has started ramping up its efforts for an in-house chip. “OPPO has been aggressively recruiting chip talent since last year as they realized that owning the chip design capability will give it more control over its supply chain,” Nikkei’s source said.

OPPO has reportedly acquired high-ranking executives from MediaTek including a former executive for Xiaomi. Further, the company has tried tapping developers from Qualcomm and Huawei’s HiSilicon.

Much like Huawei’s efforts, OPPO’s aggressive hiring aims to build a team for in-house development. Currently, OPPO still relies on third-party suppliers to build its phones like Qualcomm and MediaTek. With Huawei being attacked on all fronts, OPPO is in as much risk if the US implements a wider ban against Chinese companies. Recently, the US wants to take away Huawei’s ability to make its own in-house chips.

SEE ALSO: OPPO Reno4, Reno4 Pro specs and official renders leaked

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Enterprise

iPhone 12 series will get almost all its OLED screens from Samsung

Around 80 percent!

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By now, it’s no surprise that Apple sources some of its components from its competitors. Notably, the company obtains a portion of its screens from Samsung, one of the world’s most prominent screen suppliers. However, an upcoming report predicts a larger ratio than expected.

As reported by MacRumors, Apple will supposedly source around 80 percent of its OLED supply for the upcoming iPhone 12 series from Samsung. Meanwhile, the remaining 20 percent will come from LG and BOE. According to previous rumors, Apple was already talking with Samsung and LG prior to the report.

Of course, this isn’t the first time Samsung took a majority of the iPhone’s main supply line. Notably, the iPhone X obtained all of its OLED screens from Samsung Display. The iPhone X was the company’s first OLED smartphone.

Previously, rumors predicted five new iPhone models coming this year. Earlier this year, Apple launched the first model, the new iPhone SE. Naturally, because of the model’s budget-friendly positioning, the iPhone SE only had an LCD screen.

Hence, after the iPhone SE, Apple is still slated to launch four more models this year — presumably from the entire iPhone 12 series. According to more rumors, Samsung will provide the screens for three of these models, leaving the final model for LG and BOE.

If no further delays hamper Apple, the iPhone 12 series will still launch later this year.

SEE ALSO: Apple moving its AirPods assembly line to Vietnam

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Philippines wants to tax Netflix, Spotify to increase coronavirus relief funds

Might add 12 percent to current prices

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After two months of community lockdowns, the Philippines’s response to the pandemic remains controversial at best. At the time of publishing, the country has 14,035 confirmed cases of COVID-19 and 868 deaths.

Recently, Congressman Joey Salceda, currently chairing the Committee on Ways and Means, has proposed a new tax aimed against the country’s biggest social media and entertainment platforms: Facebook, Google, Netflix, YouTube, and Spotify.

Currently, the globally recognized companies are not taxed for putting up ads for goods on online marketplaces in the Philippines. Meanwhile, other entities still pay the 12 percent value-added tax.

As reported by Reuters, the proposed tax will siphon more funds into the country’s pandemic response, including a “national broadband project and digital learning [programs].” However, the bill’s provisions are not available to the public yet.

According to the Philippine Daily Inquirer, the tax is against both currently untaxed advertising and services. For merchants selling goods and advertising online, “only 50 percent… pay VAT.” Further, Salceda proposes that digital advertising, especially those done by foreign companies, must course through an official country representative.

For services, Salceda suggest an additional 12-percent tax on entertainment subscriptions. However, a big question lies on who will ultimately carry the blow of the new tax. Is it the company itself or the consumers through higher subscription fees? Right now, Netflix and Spotify subscriptions are slightly lower than their American counterparts. Netflix Philippines has declined to comment.

However, as a bill is still just a bill, no one knows if and when the new tax will push through.

SEE ALSO: Netflix is raising $1 billion to create more original content

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