News

Huawei says US ban, the pain is more than what is expected, be sure to wipe the $30 billion in revenues

HONG KONG (Reuters) – China’s Huawei Technologies Co Ltd, a tougher-than-expected hit from a U.S. prohibition, the company’s founder and CEO Ren Zhengfei said, ” and it cut sales guidance for the year.

Huawei’s founder Ren Zhengfei, participated in a panel discussion at its headquarters in Shenzhen, Guangdong province, China, and the 17th of June, 2019 at the latest. REUTERS/Aly Song

Given the downbeat assessment of the ban, it will hit revenues of $30 billion, which is the first time that Huawei has quantified the impact of the US action comes as a surprise after weeks of defiance, the responses of the managers who are maintaining and Huawei were technologically self-sufficient.

In the United States of america has a Smartphone and a to export a black list entry to the national security of the lock by the U.S. third-party sales of the world’s largest telecom equipment maker and No. 2 maker of smartphones, with no special permission.

The company has denied that its products pose a serious threat to the safety and security.

The ban has forced companies, including Alphabet, Inc., Google, and British chip designer ARM, to limit or terminate their relationship with the Chinese company.

Huawei did not think of the US’s determination to “crack”) of the company, it would have to be “so strong and so all-pervading”, ” Ren said, speaking at the company’s Shenzhen headquarters on Monday.

Two of the US-based tech experts, George Gilder, and Nicholas Negroponte, is also a member of the session.

“We did not expect that she was going to attack us on so many aspects,” Ren said, adding that he expects to see an upturn in business in 2021.

“We are able to supply parts, could not take part in a wide range of international organisations do not work closely with many of the universities are not allowed to use anything with U.S. parts, and you can also be able to connect to the networks that make use of these types of components.”

Huawei, which turned into a turnover 721.2 billion yuan ($104 billion) last year, expects sales of about $100 billion this year and the next, Ren said. This is compared to a first target for a growth rate in 2019 is in the range of $125 billion to $130 billion depending on the exchange rate.

THE TRADE WAR

The Trumpet of the administration slapped sanctions on a Smartphone, in a time when the U.S.-china trade relations hit rough waters, and that the statements of the leaders of China and the progress of the nation in achieving self-sufficiency in the most important sector.

Huawei has also said that it could be the roll-out of its Hongmeng operating system (OS), which is to be tested, within a period of nine months, if need be, if the phone before being cut off by the updates of Google’s Android operating system, in the wake of the ban.

But insiders remained sceptical that the Chinese chip makers will soon be able to meet the challenges of the supply of Huawei’s requirements and those of other domestic technology companies.

Negroponte, founder of the Massachusetts Institute of Technology (mit) Media Lab, has said that the US ban was a mistake.

“Our president has already said publicly that he could think of for Huawei, if we have a trade agreement (ceta). So, clearly, this is not about national security,” he said.

“It’s going to be about something else,” Negroponte added.

Huawei smartphone sales, however, will be affected by the high level of uncertainty. Ren said that the company is in the international smartphone shipments fell 40%. While he did not have the time, it is necessary to have a spokesperson of the CEO over the past few months.

The international monetary fund said on Sunday that Huawei was preparing for a 40 to 60% drop in international smartphone shipments.

The CEO, however, said the Smartphone will not cut research and development spending, despite the expected hit-out in the wake of the company’s funds, and not on the large-scale lay-offs.

($1 = 6.9239 Chinese yuan)

Reporting by Sijia Jiang of Hong Kong and Brenda Goh in Shanghai; Writing by Sayantani Ghosh; Editing by Himani sarkar and Muralikumar Anantharaman

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular