Huawei temporarily reduced smartphone production following the US restrictions

The US imposed restrictions has a significant impact on the company’s ties with the American companies as well as its business yields, and a recent report reveals that the company is preparing to brace a setback in quarterly growth.

Foxconn, a Taiwanese electronics manufacturer that assembles handsets products for many phone brands also stopped several production lines for Huawei phones in recent days as Huawei reduced orders for new phones, reported SCMP.

Smartphone manufacturers have flexibility built in their production schedules and can increase, or reduce, orders to meet changing conditions, and it is not clear whether the decreased production is temporary or part of a longer-term cut, the people said related to this matter.

Foxconn had initiated a massive recruitment drive earlier this year due to Huawei’s surging sales, according to one person. Foxconn declined to comment, while Huawei did not immediately comment.