Honor's plans, former subsidiary Huawei's plans for 2021 include the sale of 100 million cell phones. The number would represent a 40% increase over the current figure, and would put the company in a position to surpass its own “mother” and become number 1 in Chinese territory. Huawei, according to the same report produced by Nikkei Asia Review, would be thinking of selling 60 million cell phones over the next year.
Adding together the expected production of Huawei and Honor for 2021, it is possible to observe that the brand will have a 20% decline compared to the sales recorded in 2019, a time when Huawei and Honor were still part of the same company, with the latter being created to develop low-cost products by Huawei Technologies. The separation ended up happening as a way to prevent new sanctions from the Donald Trump administration, which blacklisted Huawei in the United States.
Honor's reign could run into US restrictions
And it is precisely this series of restrictions from the US government that could hinder Honor's plans to take Huawei's place as China's largest smartphone seller in 2021, according to Nikkei Asia Reviews. To avoid this, the company's top executives have already started taking some measures in parallel with the threats of a ban.
Two of the main presidents of processor suppliers confirmed that they have begun contact with representatives of the former Huawei subsidiary to discuss future business. Cristiano Amon, CEO of Qualcomm, said that his company “is pleased that the market has a new competitor.” Rick Tsai, representative of MediaTek, Qualcomm’s rival, revealed that he has spoken with the legal department to find out whether he can continue supplying parts to the company without violating the rules imposed by the United States.
All of these preliminary talks are directly linked to the change of power in the US. In January, Donald Trump, the president responsible for the presence of companies on the country's blacklist, will leave the White House to make way for Joe Biden, the opponent who defeated him in the last election. And Honor and Huawei are watching to see how the fight will play out, which could directly affect who will take over as the company that sells the most cell phones in China and, perhaps, in the world, in 2021.
Through which channels you reach those people, classic and out of the box. Android Authority
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