For the first time in the second quarter of this year, Huawei surpassed Samsung and Apple to become the world’s number one smartphone company.
But Huawei’s position as the world’s largest smartphone company is being challenged as it struggles to acquire key parts needed to make phones.
Huawei has lost Google services since US sanctions last year and has been unable to work with chip companies such as Qualcomm and Broadcom.
The sanctions were tightened in May this year, barring companies using US technology around the world from manufacturing parts for Huawei.
A report last month said that as a result of US sanctions, Huawei is now having problems making processor chips for its smartphones.
Richard Yu, head of Huawei’s Mobile Consumer Unit, said engineers could be forced to halt production of the processor chips Karen under the company on September 15 because US technology was required by contractors to manufacture them. As a result, the company will not be able to manufacture its own chips.
Now a new report states that LG and Samsung have decided to stop supplying premium smartphone displays to Huawei from September 15.
The Android Authority report did not specify what the premium meant, but it could be a reference to the OLED display, which is used in Huawei’s flagship phones.
This will be a big blow to Huawei as LG and Samsung are one of the few major display suppliers in the world and are very important to Huawei.
Now Huawei will have to rely on Chinese companies, but it is difficult to say to what extent it will be able to meet Huawei’s needs.
A recent report also said that Samsung and Hyundai have stopped supplying memory chips to Huawei.
According to media reports, the reason for all these problems is that Huawei plans to manufacture only 50 million smartphones in 2021, which will be 74% less than in 2020.