Huawei Forecasting A Loss Of $30 Billion From The US Ban
Even before the ban has hit Huawei in full swing, the Chinese tech giants are suffering big time. With Google acquiring a 90-day license extension for continuing business with Huawei, other American companies have pretty much pretty much cut them off to leave them reeling without many options. Admitting to the struggle of Huawei due to the ban by America, Ren Zhengfei, the founder and CEO of Huawei, stated at an event that his company will suffer a loss of around USD 30 billion by the end of next year if things don’t change.
Zhengfei pointed out that his company’s revenue is expected to fall and read around USD 100 billion this year from last year’s USD 107 billion. This number, he believes, will worsen further once the Android ban too comes into effect. This was the first time Huawei openly admitted to the effect the ban will have on them, after continuously iterating the point that Huawei are capable enough to meet all its technological needs on its own. Zhengfei listed out the things that he thinks will be the reason of Huawei’s sufferings including unavailability of US components and also the fact that they won’t be allowed to be in contact with any research universities. According to Bloomberg, Zhengfei had also revealed that Huawei have suffered a 40 per cent decline in their overseas sales over the last month.
The ban is not affecting the Chinese end of the spectrum only as American companies too are getting restless with the ban now. Google, in an attempt to overturn the ban, had urged the US government to let it continue business with Huawei, as a completely self operating Huawei may leave the National Security at risk. Huawei played a significant role in developing US’ technology. That too is expected to take a hit now.