Huawei may limit orders for 5G smartphones this month

Huawei may reduce orders 5G smartphone in the March because of reduced demand, caused by the epidemic coronavirus COVID-19.

Analyst Xiang Ligang says Huawei could help sell those stocks due to the company’s increased sales in the Chinese market in 2019. According to an anonymous salesman from China, orders are expected to rise again within in April.

The Chinese market was ready for the holiday season, targeting a total of 40 to 50 million sales, a figure that coincides with the 56.2 million sales of Huawei shipments in the fourth quarter of 2019.

According to an IDC report, China is likely to see its smartphone shipments plummet by 40 percent in the first quarter of 2020, which has resulted in some factory shutdowns.

Huawei ‘s smartphone inventory is about 40 to 50 million. Huawei’s cut in orders will affect around 20,000 wafers, equivalent to around 20 percent of TSMC ‘s 7-nanometer production capacity in the second quarter of this year.