Huawei Chief predicts sales will flatline after Trump crackdown…
Huawei, the embattled Chinese technology giant, is slashing its sales expectations for this year by around $25 billion as the Trump administration’s clampdown on the firm takes a bite out of its business.
Huawei Technologies Co. Ltd. is a Chinese multinational technology company that provides telecommunications equipment and sells consumer electronics, including smartphones, headquartered in Shenzhen, Guangdong, China.
Huawei’s headquarters in Shenzhen
The company’s chief executive, Ren Zhengfei, said he expected annual revenue to come in at about $100 billion both this year and next before recovering in 2021.
Last year, Huawei took in more than $105 billion in sales, helped by its fast-growing smartphone business. Mr. Ren said in January that he predicted another bumper year in 2019, with sales jumping to $125 billion.
“We didn’t expect the U.S. to attack Huawei with such intense and determined effort. We are not only banned from providing targeted components but also from joining a lot of international organizations, collaborating with many universities, using anything with American components or even connecting to networks that use American parts,” said Ren at the panel.
The founder said these adverse circumstances, though greater than what he expected, would not prevent the company from making strides. “We are like a damaged plane that protected only its heart and fuel tank but not its appendages. Huawei will get tested by the adjustment period and through time. We will grow stronger as we make this step.”
But that was before the United States last month cut Huawei off from the American chips, software and other parts that go into its handsets and telecommunication equipment
US says that the firm represented a threat to national security. American officials have long said Beijing could use Huawei’s products to disrupt or sabotage digital communications, charges that the company vehemently rejects.
Following a string of trade restrictions from the U.S., China’s telecoms equipment and smartphone maker Huawei expects its revenues to drop $30 billion below forecast over the next two years, founder and chief executive Ren Zhengfei.
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