After a series of trade restrictions imposed by the US on the tech giant, Huawei expects a reveue drop of $30 billion below the forecasted amount over the next couple of years, said founder Ren Zhengfei Monday.
The trade ban imposed by Trump will mean that Huawei’s production will slow down for the next two years. Also, the company’s smartphone shipments to overseas markets is expected to drop by 40 per cent, said Ren, referring to a Bloomberg report on the matter.
He expects the firm’s output to be “rejuvenated” by 2021, stating that it will give them time to adjust.
Huawei is expected to develop quite a few new skills as they will have to become self-sufficient in many areas due to the ban. The ban caused them to lose its chip makers and some Android services, among many other restrictions.
The tech behemoth has recently announced that it plans to create its own backup chipsets and it’s very own operating system to replace Android.
“We didn’t expect the US to attach 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, “ said Ren at a panel discussion at Huawei headquarters on Monday.
Ren went on to say that these unfavorable circumstance were a lot more serious than expected but would not stop the company from excelling.
“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.