Following the trade ban from the United States, Chinese smartphone company, Huawei expects its revenue to drop by $30 billion over the next two years. But, a lost revenue may be the least of the company’s worries.
During a panel discussion on Monday, the company’s founder and chief executive, Ren Zhengfei presented a forecast of Huawei’s future. As can imagine, it was grim.
As production slows down, the founder expects Huawei’s revenue to hover around $100 billion. That’s $30 billion less than it had previously projected.
Also confirming an earlier report from Bloomberg, Ren said that the smartphone shipment would drop by a whopping 40 percent.
With that said, the adjustment period is supposed to last for only two years. According to the CEO, Huawei’s should increase its output by the year 2021.
Discussing the Potential Lost Revenue Over a Cup of Coffee
Huawei is currently facing various challenges. Aside from preventing the Chinese behemoth from procuring chip from any American chip maker, the trade ban also restricts the company from using certain Android services.
Speaking at the panel, Ren said:
“We didn’t expect the U.S. to attack Huawei with such intense and determined effort. 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”
But there’s hope.
Almost immediately after the ban, the company said that it had been working on backup chips for years. Later, it announced an alternative mobile operating system that’s based on Android.
As dire as it looks right now, Huawei’s founder expressed a belief that the adverse condition would not prevent the company from making great strides.
“We are like a damaged plane that protected only its heart and fuel tank but not its appendages,” Ren said. “Huawei will get tested by the adjustment period and through time. We will grow stronger as we make this step.”
While the 74-years old Ren Zhengfei has maintained a low profile since he founded Huawei, he seems to be more vocal than ever now. As scrutiny from the west increases, the founder has constantly used the media to express his dismay.
An example of such is the first of its kind Monday panel, which they dubbed “A coffee With Ren.”
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