Published: Wed, June 19, 2019
Electronics | By Kelly Massey

Ren Zhengfei: Huawei to lose US$30 billion

Ren Zhengfei: Huawei to lose US$30 billion

After being placed on a trade blacklist by the Trump administration last month, Huawei is preparing for a drop in worldwide smartphone shipments by 40% to 60%, according to a Bloomberg report on Monday.

Huawei expects the United States ban on doing business with the company could take around Dollars 30 billion off sales this year. He also said Huawei would continue to press on with research and development, and will not reduce its workforce substantially. President Donald Trump has said USA complaints against Huawei could be resolved within the framework of any trade deal.

According to a report from Bloomberg, restrictions placed on Huawei telecom equipment that results in the company being unable to sell or use any technology made by or in collaboration with US-based firms could end up putting a dent in Huawei's smartphone sales of up to 60 million units.

US suppliers are taking a hit, too.

The bitter trade war between China and US has inadvertently caused a heavy toll on Huawei.

Ren confirmed Huawei's overseas smartphone sales had dropped 40%, but did not specify a time period.

Qualcomm has also lobbied the Commerce Department, Reuters said.

The US campaign has already spurred a number of major technology companies, including leading semi-conductor suppliers and brands such as Facebook and Google, to suspend cooperation with Huawei.

Authorities Seize More Than 16 Tons of Cocaine at Philadelphia Shipping Yard
Attorney's Office, Customs and Border Protection and Philadelphia Police did not immediately return requests for comment Tuesday. The Inquirer also reports that the bust happened after a member the Coast Guard found traces of cocaine on Durasevic's arms.

The Trump administration slapped sanctions on Huawei at a time when U.S.

In the next five years, the company will invest $100 billion into its network architecture to improve its efficiency and security, as well as allow it to meet global standards, such as the European Union's General Data Protection Regulation (GDPR), he said.

"After all this, we will become even stronger", he said.

He emphasised that there were no backdoors in Huawei's telecoms equipment, and reiterated earlier comments that it was happy to sign a no-backdoor agreement with any country.

The SIA said it argued that devices such as smartphones and smart watches, which do not have an appreciable national security impact, should be exempt from the sales ban.

Ren said during the panel discussion that Huawei will not use its many patents as a "weapon", but did not rule out seeking royalties for usage. However, Ren Zhengfei claimed that the company would "regain vitality" in 2021. The company's current situation "is not caused by American businesses, but rather by certain politicians' different perspectives", Ren said.

The panel, organized by Huawei, also included Nicholas Negroponte, the founder of the media lab at the Massachusetts Institute of Technology, and writer and investor George Gilder.

Like this: