For Huawei, the US ban is a real disaster. The Chinese company has to see how it can still build smartphones. But even for Sony, the problems are unexpectedly big as a result of the new regulations. That has consequences for the future.
Sony suffers from Huawei ban
Since September 15, American companies, but also manufacturers in other countries that depend on American technology, can no longer deliver to the Chinese manufacturer. For example, Samsung had to stop the delivery of memory modules to Huawei. SK Hynix supplying RAM. But of course LG and Sony are affected too. All of these companies supply Huawei with millions of components that can no longer be removed.
According to analysts at Omdia, the loss for Japanese companies will amount to more than 10 billion US dollars. For so much money, Japanese companies sent components to Huawei last year. A large part falls to Sony, as the company supplies Huawei camera sensors as one of the largest companies in the world. We are currently trying to find other buyers in China or possibly directly from Apple to close the big gap. Also, Sony is trying to provide camera sensors for other areas, not just smartphones. Huawei, on the other hand, is trying to find Chinese manufacturers that can produce in large quantities to continue building smartphones.
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Sony must change investment plans
Due to Huawei’s declining sales, Sony will likely have to reduce its investments over the next three years. It is not yet possible to say exactly how this will affect the final product. However, it is clear that Huawei’s ban is not only affecting the Chinese company, but companies around the world are suffering from not being able to deliver to Huawei. By the way, Sony will introduce a new cell phone tomorrow. GIGA will provide you with all the information you need.