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HUAWEI CEO says US ban will wipe away $30bn in revenue
The U.S. trade ban has hit Huawei in a big way, but the exact financial implications had so far remained unclear. Now, HUAWEI CEO Ren Zhengfei has revealed a rather massive nugget of information that puts the struggle in perspective.
“Our revenue will be down by about $30 billion compared to forecasts. So our sales revenue this year and next will be about $100 billion,” Ren noted in a discussion in Shenzhen. The HUAWEI CEO also expressed surprise at the extent of the U.S. trade ban.
“We didn’t expect the U.S. would so resolutely attack HUAWEI. We didn’t expect the U.S. would hit our supply chain in such a wide way — not only blocking the component supplies, but also our participation in international organizations,” Ren said (h/t: Bloomberg).
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.
The HUAWEI CEO also said the firm was hoping to maintain its R&D budget, and steer clear of major asset sales or layoffs. In the case of the latter, Ren said HUAWEI would likely assign employees in non-core businesses to core businesses in a bid to avoid layoffs. Do you think HUAWEI will emerge from the U.S. ban as a stronger company? Let us know in the comments.