Huawei braces for a massive revenue fall

huawei revenue fall

Huawei’s founder and CEO Ren Zhengfei has said in an interview that the company is expecting its revenues to be hit harder than it previously expected due to the U.S. ban. The founder said that the company is slashing its revenue expectations for the next year.

Huawei is the world’s largest telecom equipment maker and one of the largest mobile brands in the world. Speaking at the company HQ, Zhengfei said: “In the coming two years, the company will cut production by $30 billion.”

The comment from the founder of Huawei is surprising especially as the company has repeatedly insisted that the U.S. action would not have as big an impact. He said in the panel discussion that the company was not expecting to be hit from so many angles. “We cannot get components supply, cannot participate in many international organizations, cannot work closely with many universities, cannot use anything with U.S. components, and cannot even establish connection with networks that use such components.”

But in the panel discussion, the company’s leader also emphasized that Huawei was poised to make a comeback – “regain vitality” – by 2021.

As the company’s mobile sales overseas have dropped significantly, the company continues to do well in its home ground, China.