When the US added Huawei to the Entity List last month, it sparked a series of troubles for the Chinese manufacturer that are beginning to have significant consequences on its shipments and revenue. Indeed, the company has been banned from doing business with US organizations, which means it had to stop its working relationships with chip manufacturers and even Google.
Although Huawei tried to reassure markets with mitigation measures, including an in-house OS; these didn't seem to convince buyers its devices were a safe bet. Indeed, British carriers paused the introduction of the manufacturer's 5G products and its partner Foxconn was said to be halting some Huawei production lines earlier this month. The company has revealed further details on how badly it has been impacted, with an expected revenue loss of up to $30 billion.
Huawei CEO's Ren Zhengfei shared more information regarding the consequences of the ongoing trade war between China and the US, which gives a clearer understanding of how significantly it has been hit by the American measures. The company's international smartphone shipments dropped by 40% over the past month and are expected to continue declining, as Huawei is expecting to deliver 40 to 60 million fewer devices than initially planned. As a comparison, the manufacturer shipped 206 million units last year, out of which about 50% were meant to be sold abroad. Financially speaking, the company has lowered its revenue estimates to $100 billion, which is $30 billion less than the initial target.
Surprisingly, Ren Zhengfei said Huawei "didn't expect the damage to be this serious," despite how alarming the consequences can be. In addition to the measures mentioned above, the company wants to focus its sales and marketing efforts to increase its market shares in China, with hopes for them to reach 45%. The manufacturer also mentioned it's considering neither reducing R&D efforts nor laying people off for the time being, which could mean it's hoping for a positive resolution and an agreement between the two countries.