Huawei will miss revenue forecasts by about $30 billion over the next couple of years because of a US campaign against its business, the founder and CEO of the Chinese tech company said Monday.

"In the next two years, I think we will reduce our capacity, our revenue will be down by about $30 billion compared to the forecast, so our sales revenue this year and next year will be about $100 billion," Ren Zhengfei said during a panel discussion at Huawei's headquarters in Shenzhen.
The embattled Chinese tech firm has become a flashpoint in the US-China trade war. The Trump administration delivered a huge blow on May 16, when it added Huawei to a blacklist that bars US companies from selling it technology without first obtaining a US government license.

Washington fears that Beijing could use its equipment to spy on other nations and it's been pressuring allies to shut the company out of next generation super-fast 5G wireless networks. Huawei has repeatedly denied that any of its products pose a risk to national security.
Despite being locked out of the US market for nearly a decade because of those concerns, Huawei grew into the world's largest telecommunications equipment maker and the No. 2 smartphone brand.
But just four weeks on the US trade blacklist is hitting the company hard, hurting its smartphone business and eroding its dominance in 5G equipment.

Overseas smartphone unit sales have "dropped by 40%," Ren said. A company spokesman said that Ren was referring to sales in June, compared to the month last year.


Falling back behind Apple?
Ren's comments come less than a week after Huawei abandoned its goal of overtaking Samsung to become the world's No. 1 smartphone brand by the end of the year.
Some analysts say Huawei may even struggle to stay ahead of Apple (AAPL) if it remains cut off from US technology for long.

If there are "positive developments" for Huawei in the next two months, then it could "possibly" maintain its No. 2 position this year, according to Kiranjeet Kaur, an analyst with research firm IDC.
"Otherwise, it will be a tough situation for Huawei, which had almost half of its smartphone shipments in overseas markets in 2018 and the first quarter of 2019," she said.
The US export ban forced companies like Google (GOOGL) and Facebook (FB) to cut Huawei off from popular apps and services, without which Huawei phones become a lot less attractive to consumers.
Top carriers in the United Kingdom and Japan are delaying the launch of Huawei smartphones, and suppliers outside the United States are reporting a decline in orders from the Chinese company. The chairman of Taiwanese chipmaker TSMC, Mark Liu, said earlier this month that "demand from Huawei has dropped so far this year."

5G dominance at risk
Beyond smartphones, Huawei's prized position as the leader in 5G technology is looking vulnerable.Ren said the company had expected tough competition, and even conflict, once it reached a position of market leadership.
"However what we didn't foresee was that the US strategic determination to attack us would be so great, and could be so unwavering," said Ren. "We also didn't foresee that the US would strategically attack us on so many fronts," he added.

The company has invested heavily in developing the next generation of wireless technology. Huawei and its affiliated companies have made more contributions to the effort to establish an international standard for 5G than rivals Nokia (NOK) and Ericsson (ERIC) combined, according to IPlytics, a market intelligence firm that tracks tech trends.
Now, Nokia is closing the gap on Huawei by winning new 5G contracts, and some companies are reportedly avoiding Huawei at international meetings.
South Korean carrier LG UPlus, and chipmakers Intel (INTC) and Qualcomm (QCOM) have reportedly restricted employees from having informal conversations with Huawei.
A spokesperson for LG UPlus, the only carrier to use Huawei in its 5G rollout in Seoul, said "there was no formal policy within the firm about limiting conversations with Huawei." Intel declined to comment on the matter and Qualcomm did not respond to a request for comment.
Ren remains confident his company can survive, and he predicted the company could return to growth in a couple of years.
"We will not be complacent, we still want to openly collaborate with the world," he said.

https://edition.cnn.com/2019/06/17/tech/huawei-ren-zhengfei/index.html

lalasticlala

but in end you would come out stronger, better and independent.

SEGLIZ:
but in end you would come out stronger, better and independent.

How will they come out stronger when they have lost 40% sales on their device?

SEGLIZ:
but in end you would come out stronger, better and independent.

It's good to dream but don't confuse reality with dream. Without Google apps (not just android) Huawei is on a veeery loooooooong thing...

now this is reality

lanre316:


It's good to dream but don't confuse reality with dream. Without Google apps (not just android) Huawei is on a veeery loooooooong thing...

say you, they are no Nigerians with low self esteem.
they believe they can and they breaking the bounds. in due course an os being test run, what else do you expect?
their population is all that is needed then grab a fair share from the general market.
what everyone is forgetting here is the death of android in the entire of China.
they have their of which their population is supporting, and other app site. not also forgetting the face-off between google and the eu, a number of things to leverage on.

SEGLIZ:

say you, they are no Nigerians with low self esteem.
they believe they can and they breaking the bounds. in due course an os being test run, what else do you expect?
their population is all that is needed then grab a fair share from the general market.
what everyone is forgetting here is the death of android in the entire of China.
they have their of which their population is supporting, and other app site. not also forgetting the face-off between google and the eu, a number of things to leverage on.

Except Huawei plan to remain a local champion in China and won't sell phones outside China. Nobody outside China will buy their phones without Google search, Gmail, YouTube, Facebook, WhatsApp etc etc etc.

EU is not big enough to help them. They are just a toothless dog. You don't mess with the great America. Smart people/nations/companies know this already. Other foolish ones will soon learn too and get wiser.

he is just underestimating,that figure is small...Huawei could lose as high as $100 billion..Huawei mobile is dead already

martineverest:
he is just underestimating,that figure is small...Huawei could lose as high as $100 billion..Huawei mobile is dead already

He is afraid of saying the exact amount they will loose. If he does, it will scare away investors.

BTW have you noticed how the mods have avoided taking this news or any other news that is not showing Huawei as the next Big thing to the front page?

Well, reality is inevitable

TheKingIsHere:


He is afraid of saying the exact amount they will loose. If he does, it will scare away investors.

BTW have you noticed how the mods have avoided taking this news or any other news that is not showing Huawei as the next Big thing to the front page?

Well, reality is inevitable

I thought I was the only one that noticed it..I have been waiting for this news to hit front-page but didn't see any,I decided to hit the phone section and eventually saw the post..it seems Huawei is sponsoring their positive posts on Nairaland.

Huawei knows it's mobile is completely dead...even buyers in Asia (aside china) are rejecting their phones despite the price is being slashed by more than half

SEGLIZ:

say you, they are no Nigerians with low self esteem.
they believe they can and they breaking the bounds. in due course an os being test run, what else do you expect?
their population is all that is needed then grab a fair share from the general market.
what everyone is forgetting here is the death of android in the entire of China.
they have their of which their population is supporting, and other app site. not also forgetting the face-off between google and the eu, a number of things to leverage on.

the dude is stating reality and u need to face it...Huawei success is is Europe and non-chinese asia.tho they are the biggest smartphone manufacturers in china but much of their revenue comes from outside china.dont also forget they have opportunities,one plus,xiaomi etc to compete with in china

lanre316:


Except Huawei plan to remain a local champion in China and won't sell phones outside China. Nobody outside China will buy their phones without Google search, Gmail, YouTube, Facebook, WhatsApp etc etc etc.

EU is not big enough to help them. They are just a toothless dog. You don't mess with the great America. Smart people/nations/companies know this already. Other foolish ones will soon learn too and get wiser.

l
you ain't realistic here. you are allowing your love for america and sentiment becloud your sense of judgement.
the Chinese population pulls the weight, Europe will do well and Africa remain a porous market, no android phone comes from us but China, Nokia remains a prostitute looking for any avenue to regain its fair share of the market the only thing that would work against them is making the os a closed source but if it is made an open source then this is a success.

martineverest:
the dude is stating reality and u need to face it...Huawei success is is Europe and non-chinese asia.tho they are the biggest smartphone manufacturers in china but much of their revenue comes from outside china.dont also forget they have opportunities,one plus,xiaomi etc to compete with in china

mind you the same standing order that is forcing google into severing business with huawei would force them into switching over to the new os.
though I understand you point.

SEGLIZ:

mind you the same standing order that is forcing google into severing business with huawei would force them into switching over to the new os.
though I understand you point.

but u and I know that OS won't survive

martineverest:
but u and I know that OS won't survive

I doubt it won't except they ain't willing.

SEGLIZ:
l
you ain't realistic here. you are allowing your love for america and sentiment becloud your sense of judgement.
the Chinese population pulls the weight, Europe will do well and Africa remain a porous market, no android phone comes from us but China, Nokia remains a prostitute looking for any avenue to regain its fair share of the market the only thing that would work against them is making the os a closed source but if it is made an open source then this is a success.

u aren't getting it...china is using Chinese android OS and not Google android.the Chinese market is already saturated.. Europeans and asians buy Huawei phone because of Google android.europeans,japanese,koreans,and Taiwanese are the biggest users of Huawei products.they use it because it comes with trusted American operating system (Google's Android).once it's been replaced by huaweis OS,they will abandon Huawei devices cos the OS and servers are linked to china in order to avoid spywares.mind u,Koreans,Taiwanese and Japanese are already wary of Chinese invasive attitude towards them.thwy are the biggest beneficiaries of huaweis ban.they will patronise their respective national brands :Samsung(Korea),LG(Japan),HTC(Taiwan)

SEGLIZ:

I doubt it won't except they ain't willing.

remember windows phone(owned by biggest software company, Microsoft); blackberry (the most secured OS and tizen OS(the largest smartphone makers, Samsung)

martineverest:
u aren't getting it...china is using Chinese android OS and not Google android.the Chinese market is already saturated.. Europeans and asians buy Huawei phone because of Google android.europeans,japanese,koreans,and Taiwanese are the biggest users of Huawei products.they use it because it comes with trusted American operating system (Google's Android).once it's been replaced by huaweis OS,they will abandon Huawei devices cos the OS and servers are linked to china in order to avoid spywares.mind u,Koreans,Taiwanese and Japanese are already wary of Chinese invasive attitude towards them.thwy are the biggest beneficiaries of huaweis ban.they will patronise their respective national brands :Samsung(Korea),LG(Japan),HTC(Taiwan)

my bro this your perspective weak me. this more than political and the supremacy fight between us and China. this is security and cold war. you really got me here, I won't argue just for the sake of it, you got a good point even though I still cut my reservation but you made a salient point here.

martineverest:
remember windows phone(owned by biggest software company, Microsoft); blackberry (the most secured OS and tizen OS(the largest smartphone makers, Samsung)

I would ask a good question here, why is iOS that not open source still holding grounds?

SEGLIZ:

I would ask a good question here, why is iOS that not open source still holding grounds?

because they have developers support (developers favourite) and developers make more money almost 3x than they make on android;it's very secure;they were also they ones that 'initiated' the smartphone era...another one is they have about a billion users

SEGLIZ:

my bro this your perspective weak me. this more than political and the supremacy fight between us and China. this is security and cold war. you really got me here, I won't argue just for the sake of it, you got a good point even though I still cut my reservation but you made a salient point here.

Love your method of argument! You got your points as well at least without insults.. I bet you ain't living in Nigeria.
To me, I still love HuawAi! Japanese tech companies be smiling now