HUAWEI forsees RM125.5 billion less revenue due to US ban
HUAWEI has been dealing with some serious issues with the US and its allies, as they aim to cut HUAWEI off entirely from the rest of the tech industry. The US trade bans, which will see HUAWEI not being able to obtain hardware and software from US-based companies, will severely affect the Chinese tech giant’s bottom line, to the tune of $30 billion (~RM125 475 000 000).
This figure was noted in a discussion that Ren Zhengfei, HUAWEI’s CEO, hosted in Shenzhen. While HUAWEI was previously on track to topple Samsung as the top Android smartphone maker, the US-China trade wars has put a wrench in the plans. HUAWEI expects to see 60% less international smartphone shipments because they won’t be able to harness Google’s massive Android ecosystem once the ban sets in.
With such a huge setback in their financials, HUAWEI is expecting to see their revenue plateau at $100 billion (~RM418.25 billion) for this year and the next, which isn’t half bad, but it isn’t helping them achieve their goal of being the top smartphone maker in the world. As US companies are lobbying to do away with the ban, HUAWEI may see some reprieve, but as it stands, they will have to power through a very tough period, if only to emerge stronger at the end of it.
Pokdepinion: It’s disheartening to see innovation stemmed due to trade wars…