Huawei has been battling many worries and many types of suspicions over its security of networks. With the effect of its ban in the US, China’s Huawei is finally bowing out one particular line of business. Huawei has decided to do away with its undersea cable operations. Furthermore, it is also, reportedly, shrinking its orders for smartphone production orders Foxconn, a supplier.
Huawei Marine Systems, Huawei’s undersea cable laying business which lays out optic cables undersea just as Google and Facebook does. This company was established back in 2009, and so far has laid down more than 50,000km of cable for over 90 projects as per its own website.
As per FT reports, with the fact that Huawei finds itself in the spotlight, thanks to the issues about spying and the US ties, the company is finding it hard to win over contracts and to get deals.
Hengtong Optic-Electric, another Chinese company, has decided to purchase Huawei Marine Systems. This deal was made official by the company at a filing in the Shanghai Stock Exchange. However, the price of the deal has not been disclosed.
Another report, from the South China Morning Post, said that Foxconn a supplier for smartphone production parts and assembly has reduced serval lines for the company over the past several days. The reduction in the line of products being supplied to this Chinese company came right after it reduced the number of orders from Foxconn.
The fact that Huawei has reduced the number of orders from the company come right after being banned from the US by Trump. Earlier, it had been reported that Foxconn was hiring new personnel to keep up with the growing demand for products by Huawei. It was being speculated that the company would become one of the largest producers of smartphones in the world by the end of 2019.