Huawei founder CEO Ren Zhengfei has spoken out about the troubled Chinese manufacturer's prospects in the aftermath of the US sanctions levied against them. According to a report by Reuters, the tech giant anticipates a drastic drop in a revenue to the tune of billions of dollars.
Huawei predicts that its revenue will drop to $100 billion this year, down from last year's $104 billion. This is compared to its previous expectation to make $125 billion in 2019. During a PR event in Shenzen, China "A Coffee With Ren," the CEO confirmed that Huawei smartphone sales are expected to drop 40 percent in coming years, and the the company could roll out its own Hongmeng OS within nine months if Google continues to withhold Android.
The gloomy forecast from the Huawei founder after so much initial bluster and bravado is understandable when you consider the avalanche of misfortune that followed the Trump administration's sanctions against the Chinese company. Chipmaker ARM has also withdrawn its business from Huawei, sales have slumped and trade-in prices have fallen to record lows as international consumers lose their faith in the future of their Huawei smartphones, even prestigious flagships like the P30 Pro.
Addressing the dismal revenue projects, Ren confirmed that the fallout from the US sanctions were much worse than anticiapted. "We did not expect [the Trump administration] would attack us on so many aspects," said the Huawei founder, and said that the company may not full recover until 2021, although he reassured the press panel that Huawei did not plan to cut back on R&D spending or instigate mass layoffs.
It's worth noting that the precise nature of the US case against Huawei is muddied by the larger trade war between the Trump administration and the Chinese Communist Party. Rather confusingly, Trump has stated that the 'dangerous' Huawei could be granted clemency as part of a trade agreement between the US and China, which, if Huawei represents a real security threat to US citizens, would be a curious move.
Huawei's misfortune "is not caused by American businesses, but rather by certain politicians’ different perspectives," Ren said during the panel. "I think both sides will suffer. No one will win."