Huawei forecasts 40 to 60 percent drop in international smartphone shipments after the US ban: report

Huawei is also exploring the idea of pulling its latest Honor 20 smartphone off the international market if the sales are weak

Trump administration’s trade ban is turning out to be a costly affair for Huawei. The company has two months before every US-based company suspends its business relations with it. This will surely hinder Huawei’s goal of becoming the world’s number one smartphone brand by 2021. Huawei’s founder and CEO Ren Zhengfei admitted that the ban was more severe than expected and also warned the company’s revenue would drop to around $100 billion in 2019 and 2020. Now, Bloomberg reports that the Chinese brand is preparing itself for approximately 40 to 60 percent drop in worldwide shipments.

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Furthermore, citing insider sources, the report claims that Huawei is already exploring the idea of pulling its latest Honor 20 (review) from the international market if the sales are weak. The handset is scheduled to go on sale in parts of Europe, including Britain and France, from June 21st. Huawei’s marketing and sales team are expecting a drop of around 40 to 60 million global shipments in 2019, the report said. To balance the fall in the international market, Huawei is aiming to capture half of China’s smartphone market in 2019.

Despite the massive dip in revenue and shipments, Huawei is determined to continue its investments in research and development and would not lay off its employees. The company is already in the process of making its in-house operating system official as early as October. The company expects that the smartphone business would revive by 2021, but until then the revenue is expected to dip beyond $100 billion worldwide.

Sai Krishna is a close follower of tech and everything that has the word 'smart' involved. This makes him passionate to write about everything revolving around the world of technology. He can always be seen surfing the web and while he’s not working, you can find him re-watching Seinfeld and reading comics.
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SOURCEBloomberg