Counting the cost already? Huawei CEO expects revenue to be down by at least $30bn

Look away, Huawei fans, because this may not be the news you are looking out for. The Chinese-based tech giant is in the news again, this time around, to confirm our worst fears for the company.
For some weeks now, there has been a lot of debate coming up on how the recent trade ban imposed on some Chinese tech giants by the US governments will affect their businesses. As the second-largest smartphone maker in the world, Huawei has been bearing the full brunt of the US-government imposed ban. Initially, nobody could really ascertain the exact financial implications of the trade ban. It remained unclear how far and long the blacklist would be effective as the tech-giant scrambled to put up some backup plans. Now, we have an official statement from Huawei’s CEO Ren Zhengfei that confirmed the speculations of impending sales decline.

Sales Decline could be worse than initially thought

By all indications, the next couple of years may be the toughest ever for the Chinese brand. Huawei boss also admitted that the US-imposed trade ban is hitting the company harder than initially thought.
While addressing reporters in China, Zhengfei disclosed some vital information that gives us a clearer perspective of the whole struggle. The Huawei boss revealed that the firm would fall short of expected sales and shipments forecast by up to $30 billion.

The company lost access to its major hardware and software supply chain right after the trade ban. Over the past few weeks, Huawei saw a sharp decline and setback in its overseas smartphone unit sales and 5G technology.

While reacting to this, Huawei boss stated that the devastating effect of the blacklist is taking the company by storm. Despite preparations, the company is struggling to achieve its expected forecast and growth aspirations- no thanks to the trade blacklist.

Elongated trade ban may see Huawei lose its spot to Apple

Just recently, it scraped the production of its popular Matebook laptop-series after announcing plans to reduce its smartphone production orders.
According to Huawei CEO, the firm now hopes to ward off competition from Apple and maintain its spot as the second-largest smartphone maker in the world. To do this, the brand must maintain its R&D budget while the trade ban doesn’t have any further devastating effect.
As at now, it remains unclear whether Huawei will be able to shrug off harsh US trade policies or not. One thing is clear, though. Huawei sure has a lot of work to do to come out stronger from the US-imposed trade ban.

Header Photo by 🇨🇭 Claudio Schwarz | @purzlbaum on Unsplash