Huawei Admits Revenue Will Be Down by USD 30 Billion due to US Ban

While the Chinese mobile brand remains optimistic about its fate, Huawei can’t help itself but admit that the company will miss sales forecast by about USD30 billion over the next two years due to US-Chine trade war.

Huawei Admits Revenue Will Be Down by USD 30 Billion due to US Ban 

In case you missed it, Huawei's revenue in 2018 grew by about 20% to CNY 721 (~USD 104 billion). However, the company said that their sales revenue will be just about USD 100 billion this year and in 2020 . In short, its former forecast drops by about USD 30 billion.

“In the next two years, I think we will reduce our capacity, our revenue will be down by about USD 30 billion compared to the forecast, so our sales revenue this year and next year will be about USD 100 billion,” Ren Zhengfei, founder and CEO, addressed at Huawei’s headquarters in Shenzhen.

Also, the company revealed that overseas smartphone unit sales have dropped by 40% between May 17 and June 16, compared to the month to May 16 -- the day when Trump blocked US companies from selling its technology to Huawei.

Some experts also predicted that the Chinese tech giant will struggle staying ahead of Apple. However, IDC Analyst Kiranjeet Kaur claimed that Huawei might still be able to maintain its position as the second biggest mobile vendor this year.

See Also: Google, Intel and Qualcomm Turn Its Back on Huawei

“We also didn’t foresee that the US would strategically attack us on so many fronts,” Zhengfei noted.

Though the company admitted that it underestimated the U.S. ban's impact, Huawei is still confident that they can survive this rocky road and might boost its sales once again in a couple of years.

What can you say? Do you think Huawei can bounce back?

Source: CNN