Things surely are not seeming to go their way for Huawei. Being on the U.S hit-list is doing more harm to the telecom giant than expected as per it’s potential revenue dip — a massive $30 billion over the next two years.
Huawei’s smartphone sale have seen a downfall of 40% last month as compared to the month before, as the Chinese company tries it’s best to stick through the unfortunate on-goings. Ren Zhengfei, Huawei chief executive confirmed that the telecom juggernaut will see a dip in it’s sales due to the U.S blacklisting.
“In the next two years, I think we will reduce our capacity, our revenue will be down by about $30 billion compared to the forecast, so our sales revenue this year and next year will be about $100 billion,” Ren Zhengfei said at Huawei’s headquarters in Shenzhen.
With a strong-hold in the telecom industry, being the world’s No. 1 telecom supplier and No. 2 phone manufacturer, it is still seen as an outlaw in several countries, most importantly, the US.
The company may have run into it’s biggest trouble yet with the US President placing it on a prohibitive “entity list” this May citing national security issues. The company has denied those allegations of its products posing as a security threat with Ren suggesting that it was an intent by the U.S to check a fast-growing Chinese company. So much so is the fight, that Huawei even has a close US ally, the UK, on its side.
The ban has forced several tech companies like Alphabet Inc’s Google and British chip designer ARM to limit or cease their relationships with Huawei. The US is also limiting the company’s cooperation with U.S. universities with some of them cutting their research partnerships with the telecom giant in the recent months.
Huawei had not expected that U.S. determination to “crack” the company would be “so strong and so pervasive”, Ren said to the press. “We did not expect they would attack us on so many aspects,” Ren added.
Huawei, turning in a staggering revenue of 721.2 billion yuan ($104 billion) last year, expects revenue of around $100 billion this year and the next.
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