It was quite clear that the US trade ban affecting Huawei would be disastrous for the Chinese manufacturer however the financial implications of the events that took place was not at all made clear – until now. Now, the CEO of Huawei – Ren Zhengfei has made it clear that not only will the trade ban cause a huge loss in revenue, but exactly by how much too.
The CEO of the company said : “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.”Other than the statement made with regards to the financial side of things, the CEO of Huawei also expressed his surprise over the extent of the trade ban.
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He said : “We didn’t expect the US would so resolutely attack Huawei. We didn’t expect the US would hit out supply chain in such a wide way – not only blocking the component supplies, but also our participation in international organizations.”
Ren also noted that the trade ban has had major implications on the sales of Huawei smartphones, saying that they have dropped by 40 percent following the trade ban. Such news was first reported by Bloomberg, as it claimed that internal estimates point to a sales drop of between that of 40 and 60 million units.
The CEO stated that Huawei was indeed in the hope that it would maintain its R&D budget, and would steer clear of major asset sales or layoffs. And as far as the case for the latter goes, Ren said that the company would actually assign employees in non-core business to core business in order to avoid layoffs.
