Enterprise
Huawei slashes its smartphone production after US ban [Update: Huawei responds]
Sub-brand Honor expresses wariness
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.
Enterprise
Global Connect Show Shenzhen empowers Chinese enterprises
Opportune time for new Chinese enterprises to go global
The Global Connect Show Shenzhen 2026 (GCS SZ 2026) was successfully held on June 1 at China’s innovation hub.
More than 100 Chinese enterprises joined the event, encouraged to expand into international markets.
The program focused on three core pillars:
- Chinese brand going global
- Global channel connection
- Dedicated “Into the Enterprise” series
China has developed a new generation of internationally competitive companies across various sectors, including:
- consumer electronics
- smart hardware
- artificial intelligence
- robotics
As these companies enter a new phase of going global, demand is growing for global communications, brand building, market trust, and localized business networks.
As such, the Global Connect Show is one of the platforms to be able to strengthen the relationship across enterprises, partners, business associations, and even media and influencers.
It is a significant window for innovative brands to enter global retail channels by building compelling brand narratives and developing strong localized operations.
This year’s GCS is the third staging of the show, which consistently aims to match Chinese brands with partners through a results-first approach. Such an approach includes hands-on product experiences, presentations, and one-on-one meetings.
Enterprise
New US-China ban might affect 75% of phones, laptops
Companies can no longer use Chinese labs to test their products.
The United States is continuing its crusade against Chinese technology today. However, the target now isn’t a company from China but a method important to a lot of non-Chinese brands.
Today, via Reuters, the Federal Communications Commission (or FCC) has unanimously voted to prohibit companies from using Chinese labs to test their electronic devices if they are to be sold for use in the United States. Naturally, this includes smartphones and computers.
Notably, the prohibition doesn’t directly target Chinese brands. However, it will still affect a huge swath of the industry. The FCC estimates that around 75 percent of the entire market are devices tested in labs based in China.
This means that companies who wish to sell future products in the country must move their testing to labs in the United States or other countries that it deems secure. At its current iteration, the prohibition will not affect devices that already earned their certification prior. However, it might prevent them from getting recertified once their current one expires.
Now, the prohibition isn’t an absolute lock just yet. The FCC will allow the industry to submit comments about the proposal. But, with a unanimous vote from the FCC, companies might have to start looking for alternative testing sites if they want to stay operation in the United States.
Enterprise
OnePlus has reportedly merged with realme
Both brands were previously rumored for restructuring early this year.
OnePlus has a problem. For a while now, rumors have swirled about the company’s dissolution. For their part, the company has continued to deny the reports, citing business as usual. Likely to their dismay, the reports just keep coming. Today, sources have hinted that OnePlus has merged with realme.
Back in January, it was rumored that OnePlus would be closing up shop this year. Since the company very quickly denied the rumors, the report hardly made waves. However, a suspected merger with realme is more difficult to debunk.
For one, realme is itself in a very interesting position. Also back in January, realme was reportedly moving back into being a sub-brand of OPPO. Coupled together with the OnePlus debacle, all this internal restructuring seems par for the course.
According to Digital Chat Station on Weibo, OnePlus and realme have already concluded the merger. The two brands have reportedly united their Chinese and international operations under one roof. Likewise, their marketing will be the same. Pete Lau will still be the main head for this new division.
As with anything of this nature, take this with a grain of salt. OPPO, OnePlus, and realme have not issued any official statements concerning a merger or a shutdown for any brand.
SEE ALSO: realme is reportedly going back to being an OPPO sub-brand
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