More bad news from Huawei: Mate 40 production is throttled

Mate 40

Huawei is slowly running out of resources and, according to a report, this means that fewer Mate 40 s will be produced than originally planned.

A few days ago I wrote about where Huawei could go and had to paint a much darker picture of the company than I would like. I appreciate the products of the Chinese beyond measure and therefore grant them all the success that they have been able to record for them in recent years.

However, the US embargo puts the manufacturer in a more than a bold line of bills, which is a creepy cut-off date on September 15. From this day onwards, components can no longer be supplied as long as US technologies are used.

Exception: Appropriate exemption permits are granted and it really does not look like that at the moment.

As DigiTimes now reports, this is already having an immediate effect on Huawei’s next top smartphone, the Mate 40. According to the information from the Taiwanese industry newspaper, production will be significantly smaller than originally intended. If it was previously planned that almost 16 million units would be produced, there are now only 11 million units.

This has to do with the fact that the well-known Greens are simply running out of resources, but also with the fact that, for the same reasons, demand in Western countries will simply be lower than before.

This means that the Mate 40 is already groaning well under the effects of the US embargo and it paints a very unpleasant picture if you look further into the future: Not only that the previously hoarded components will eventually come to their end – about it, In addition, these stocks suffer from the fact that the development of chips and other components continues and Huawei would no longer be competitive even if the warehouses were still full.

In addition, Huawei is also losing resources in the form of personnel. You had to tell your HiSilicon employees that they could take unpaid leave and that they would be released from work for the time being. Sure, because you can’t produce or develop at the moment.

For the staff, however, this means that you either try to make ends meet without an income – or, what is more likely, you try to find accommodation elsewhere as quickly as possible.

Huawei is therefore losing some of the heads that stand for the company being able to reach the top technology, the components are running out and the components that are still available will sooner or later no longer be able to keep up with the competition.

Yes, there have been better days for Huawei and yes, it still makes me angry how a company is treated here that has not yet been proven to justify these measures.