In China, Huawei’s smartphone star is quickly fading as US sanctions bite
- The Chinese telecoms giant is expected to produce much fewer smartphones this year after US restrictions blocked its access to key hardware and software
- Plunging supplies of Huawei phones are forcing franchise retailers to close stores or switch to selling other domestic brands
At a premier spot in Donlim Emperor Court, a shiny new shopping centre in the southern Chinese city of Foshan, stands a 1,700-square-foot Huawei store. With massive Huawei logos adorning its walls, the franchise outlet has been such a treasured presence that the mall’s property management featured it in promotional materials to woo potential tenants.
On a recent visit, however, the store was deserted, save for a tiny Christmas tree and a few pieces of furniture. The door was locked. It turns out that the shop permanently closed right before Lunar New Year, just eight months after opening.
The sharp decline in production has dealt a massive blow to Huawei’s retail distributors. Eddie Cen, a leasing manager at Donlim Emperor Court, said he was told by the owner of the closed Huawei store that supplies for Huawei devices had dried up. That distributor, which operated 30 Huawei outlets at its peak, is closing at least nine of them, according to Cen.
The problem is not unique to Foshan. Across the country, reports of dwindling stocks of Huawei smartphones have surfaced in recent months as retailers switch to selling other domestic brands such as Oppo, Vivo and Realme.
