While Huawei has been growing its market share in its home country China, the company has witnessed a drop in smartphone shipments in the overseas market after the United States banned the company citing security concerns.
However, the major obstacle for the Chinese giant is the recently tightened restriction that has banned the company from procuring and manufacturing semiconductors using American technology or company.
The new restrictions could have an impact on its core telecom equipment business as well. Now, a new development hints that the ban has not only affected the company’s smartphone business but also the Smart TV business.
As per the report, Huawei has reduced the order of its components for the TV production by 30 percent to 40 percent. This is because the company has been unable to secure a sufficient supply of chipsets for Smart TVs.
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Huawei and its sub-brand Honor both forayed into the Smart TV market last year. The company has been procuring LCD panels for the TV from BOE Technology and China Star Optoelectronics Technology (CSTO). The report adds that the company has been outsourcing the production of TV sets to a BOE subsidiary.
It is also being reported that the company has slowed down the pace of its orders to handset ODMs in Chian. Now, it remains to be seen how Huawei addresses this issue of semiconductor components which is severely impacting the business.
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