Huawei admits to have underestimated the US ban, expects revenue dip to $100 billion in 2019 and 2020

“Huawei’s worldwide smartphone shipment is expected to drop 40 percent, CEO expects the smartphone business would revive by 2021”

Huawei set itself a goal of becoming the number one smartphone brand worldwide by 2021. However, with the US trade blacklist, things might be taking a drastic turn. Now, during an event at the Huawei’s Shenzhen headquarters, founder and CEO Ren Zhengfei mentioned that the United States’ ban was more severe than expected and also warned the company’s revenue would drop to around $100 billion in 2019 and 2020. This is the first time the company has openly discussed the impact of the trade ban and comes weeks after Huawei executives claimed the brand is in a strong, self-sufficient position.

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Furthermore, Ren said that the Chinese giant didn’t expect the ban would be “so strong and so pervasive.” The trade blacklist effectively bans Huawei from doing business with the American companies. According to the CEO, Huawei’s worldwide smartphone shipment is expected to drop 40 percent, but a timeline for it isn’t specified. The world’s second largest smartphone vendor reported a venue of around $104.16 billion in 2018 and is expecting to breach the $125 billion this year.

We did not expect they would attack us on so many aspects. We cannot get components supply, cannot participate in many international organisations, cannot work closely with many universities, cannot use anything with U.S. components, and cannot even establish a connection with networks that use such components,” added Zhengfei. He expects the smartphone business would revive by 2021, and the company would continue to invest in research and development and would not lay off its employees, despite the massive dip in revenue. Huawei has two months before the grace period ends, so it remains to be seen if the Trump administration would extend the ban or cancel it altogether.