After following a string of trade restrictions in the US, the company is going to face a huge loss of $30 billion. Yes according to the latest reports on Monday 17th June Huawei is going to miss a huge amount its sales forecasts by about $30 billion over the upcoming years because of the US campaign against its 5G roll out business.
For this, the founder and CEO of the Chinese tech company said this morning that Huawei will hover approximately $100 billion this and upcoming year. Due to the ban on the services of the company the firm’s overseas Smartphone shipment is suspected to drop by 40 percent this year, confirming an earlier report from Bloomberg.
To this, the 74-year founder and chief executive Ren Zhengfeihe of the company also said that these circumstances are much more adverse then what he has expected, but certainly, this ban would not stop the company from making this step. “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” he said.
In all these circumstances the embattled Chinese tech has become a flash-point in the US-China trade war. The reports of the ban of 5G rollout by Trump administration on May 16 have delivered a huge blow. The decision to roll out without a US license was a wrong decision of the company. Even though being locked out of the US marketplace for nearly a decade because of those issues, Huawei still grew into the world’s largest telecom equipment providing company. At present, the company is leading the charts as the No. 2 smartphone brand.
But it has been only 4 weeks and the US trade blacklist is hitting the company hard, hurting its smartphone business dramatically and eroding its control in 5G equipment.
Nicholas Negroponte chairman of One Laptop per Child, a non-profit organization said that – “The U.S is making a terrible mistake, first of all, picking on a company”. “I come from a world where the interest isn’t so much about the trade, commerce or stock. We value knowledge and we want to build on the people before us. The only way this works is that people are open at the beginning… It’s not a competitive world in the early stages of science. [The world] benefits from collaboration” he said.
The Overseas Smartphone sales have “dropped by 40%”, and to this some analyst’s state that Huawei may have to put great efforts to stay ahead of Apple if the same situation continues for a longer time. The US government has even ban forced companies like Google and Facebook to cut Huawei off from well-liked apps and services, without which Huawei phones become a lot less eye-catching to consumers worldwide.
“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 Zhengfeihe. “We also didn’t foresee that the US would strategically attack us on so many fronts,” he added.
According to IPlytics, a market intelligence firm- The Company has invested greatly in developing this 5G technology for the next generation wireless equipments. Huawei and its allied companies have made more efforts and contributions to establish a 5G international standard than companies like Nokia (NOK) and Ericsson (ERIC) united.