Huawei is currently the world’s largest smartphone manufacturer in terms of shipments. The company finally managed to surpass Samsung after years of being ranked second or third in the list of top smartphone makers.

However, the company won’t be able to retain its rank. In fact, it seems difficult to see the brand among the top smartphone companies list. Now, a report from The Elec claims to have Huawei’s plan for phone manufacturing, which seems to fit our speculations.

As per the report, Huawei is planning to produce around 50 million smartphones in 2021. This represents a massive 74 percent drop compared to what the Chinese giant is expected to ship this year.

Just to give you an idea, the company had shipped around 240 million units of its smartphones last year. For the current year, the company is expected to ship around 190 million units of its phones.

The primary reason behind cutting down smartphone production is because of the sanctions imposed by the United States which has made it almost impossible for the company to continue making phones. Thanks to this, Samsung is now expected to ship more than 300 million units of smartphones in 2021.

It all started last year in May when the U.S. government banned Huawei, restricting it from using Google‘s Android or any of its services and apps on Huawei or Honor smartphones, among a few other restrictions.

Most recently, the U.S. government tightened restrictions and added new sanctions on Huawei and dozens of its subsidiaries, banning it from procuring chipsets from Qualcomm or MediaTek. TSMC, which manufactures Huawei’s Kirin chipset, has also been restricted to provide its service.

Currently, the company is relying on SMIC to produce budget Kirin chipsets that can be used in budget and mid-range smartphones. However, the U.S. government is also planning to ban SMIC. if it goes through, then Huawei will practically have no access to chipsets for its smartphones.