According to a report from the South China Morning Post, the ban by the U.S. has prevented Huawei from accessing supplies that are 'crucial for international sales' including chips made by Intel and access to Google's Android operating system.
The ban may also force Huawei to reassess its goal of becoming the most popular smartphone purveyor by 2020.
'As the new situation has emerged, it is too early to say whether we are able to achieve the goal,' said Zhao Ming, president of one of Huawei's smartphone brands, at a media briefing in Shanghai on Friday night according to the report.
The company still holds its number two spot in terms of global smartphone sales in the first quarter of the year, but may have difficulty staving off Apple or catching world leader, Samsung, in the midst of an escalating trade war between the U.S. and China.
Huawei has denied the reports from the South China Morning Post, telling Forbes 'Huawei refutes these claims, our global production levels are normal, with no notable adjustments in either direction.'
For Huawei, one of the biggest escalations in the U.S. government's ban was Google's decision to limit the telecom giant's access to its Android operating system.
The company announced that it will no longer provide support or patches for any of Huawei's devices, a decision that would effectively knee-cap its phones on the user end by causing them to rapidly become outdated and vulnerable.
As a result, Huawei is looking to speed of the creation of its own operating system which would forego the reliance on those of U.S. based companies.
The U.S. government banned Chinese suppliers including Huawei and its smaller rival, ZTE Corp., saying that they pose an espionage threat since they're both beholden to China's ruling Communist Party, however, American officials have presented no evidence of any Huawei equipment serving as intentional conduits for espionage by Beijing.
While Huawei has taken a major hit from the ongoing dispute, the U.S. is far from immune to the effects of the escalations.
Rural America may feel the consequences of the U.S. ban on Huawei the most as many small telecommunication companies rely on the company's hardware, which has since been banned, to build wireless networks.
As a result, trade groups have stated that it could cost between $800 million to $1 billion to replace current infrastructure.
Second, non-US users of Huawei devices aren't going to be pissed at Huawei. They love their phones. Instead, all that animosity will be directed at the USA since they're the one causing all the problems.
Third, Chinese companies frequently burn money to spread their stuff and grow in size and scope until they become profitable. So, it wouldn't surprise me in the least if Huawei came up with some kind of "trade-in" plan or something else that will keep customers happy once their "non-USA" phones hit the market (which itself will happen waaaay sooner than anyone thinks). And that assumes that customers will be unhappy, which hasn't happened yet.