Chinese tech giant Huawei plans to produce about 50 million smartphones in 2021, which would be a 74 percent drop from the company's expected shipments in 2020, South Korean media outlet TheElec reported.
Huawei shared this target with South Korean subcontractors, the report said, citing sources with knowledge of the matter.
Huawei shipped 240 million smartphones in 2019 and expects to ship 190 million this year. The 2021 targets equate to 21 percent and 26 percent of those shipments, respectively.
Huawei's lowered shipment target is largely a reaction to US sanctions, which are hampering its ability to obtain smartphone components.
Huawei's Kirin 9000 chip stockpiles said to be capable of supporting 10 million phones
Starting September 15, the company is prohibited from sourcing semiconductors for smartphones and laptops. Huawei can use chips from its inventory, but not the latest processors that its competitors will use.
Huawei's competitors such as Samsung may benefit from this latest development, especially in markets such as China and Europe.
Of Huawei's RMB 858.8 billion yuan in annual sales last year, 50.67 billion (59 percent) came from China and 206 billion (24 percent) from Europe.
Samsung is aiming to expand its market share in Europe next year, the report said. The company is ranked No. 1 in the region, but saw its shipments and share decline in the first half of 2020.
Samsung is aiming to ship 300 million smartphones in 2021, a new target designed to take advantage of the vacuum left by Huawei. Samsung shipped 295 million smartphones in 2019, while this year's shipments are expected to be between 240 million and 260 million units.
Samsung aims to be aggressive in India next year as well, but the company isn't looking to make such an aggressive push in China, where it has less than 1 percent market share and is unlikely to regain its past glory.
Huawei phones see big price hikes in grey market as Kirin chips can't be produced in future
