revenue loss of Huawei
Image credit- reuters

US ban has hit Huawei hardly. For the first Huawei has specified a number that shows how much their revenue will be impacted by this ban. Speaking at a panel discussion at Shenzhen China, CEO Ren Zhengfei said that its revenues will drop by $30 billion over each of next two years.

Ren said that they are expecting $100 billion in revenue for each of the next two years. In 2018 they had generated $107 billion in revenue and they were expecting $125 billion for 2019 in February this year. “We did not expect they would attack us on so many aspects,” Ren said.

He also said that Huawei didn’t expect that the US would go so hard on them to crack them down. Although he believes that this will bring the best out of Huawei. And Huawei will revive strongly by 2021.

Most of the US partnered companies has cut ties with Huawei following the US ban. Google and ARM’s decision have mostly hurt Huawei. “We cannot get components supply, cannot participate in many international organizations, cannot work closely with many universities, cannot use anything with U.S. components, and cannot even establish a connection with networks that use such components,”  Ren said.

Ren also confirmed that Huawei’s international smartphone sales dropped by 40 percent following the trade ban against it. The news was first reported by Bloomberg, which claimed that internal estimates point to a sales drop of between 40 million and 60 million units.

In spite of all of these, Huawei’s CEO confirms that this will not affect the budget of R&D. What do you think about Huawei’s future? Let us know.

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