Connect with us

Huawei Says US Ban Cost It $30B Worth Of Lost Revenue

Huawei is trying to be as optimistic as it can regarding the US blacklist as it braces itself for some damage.

Ren Zhengfei, Huawei’s founder and chief executive officer, revealed on Monday during a discussion at the company’s headquarters in Shenzhen that revenues for the next two years could drop by about $30 billion below forecast.

According to Ren, production at the company will slow down for the next two years. Expected revenue will be at around $100 billion each year, while the global shipment for Huawei’s smartphones will drop by around 40%.

Regardless of these hurdles, Ren is still trying to have a positive outlook on the situation, saying that the company will be “rejuvenated” by 2021, once they have adjusted to changes, and by that meaning the development of its own backup chips and its own smartphone operating system.

“We didn’t expect the U.S. to attack Huawei with such intense and determined effort,” Ren says. “We are not only banned from providing targeted components but also from joining a lot of international organizations, collaborating with many universities, using anything with American components or even connecting to networks that use American parts.”

Despite that, Ren assures that Huawei will not back down from the challenge. “We are like a damaged plane that protected only its heart and fuel tank but not its appendages. Huawei will get tested by the adjustment period and through time. We will grow stronger as we make this step.”