Huawei appreciated lost revenue due to US sanctions "GoGetNews News

US sanctions against Huawei Technologies will cost the Chinese company lost revenues of $ 30 billion in the next two years. This was stated by the founder and CEO of Huawei Ren Zhenfei, for the first time assessing potential losses.

He noted that Huawei's revenue will remain at the level of 2018 – about $ 100 billion, both in 2019 and in 2020.

Huawei, however, plans to keep the R & D budget unchanged, said Ren Zhengfei.

He also said that he was surprised at the scale of Washington’s attack on Huawei. The suspension of cooperation with Google, as a result of which Huawei will lose access to updates of the Android operating system, as well as many applications, could lead to a 60% drop in sales of the company's smartphones outside China.

The head of Huawei acknowledged that American sanctions could nullify the company's competitive advantage, such as Ericsson AB and Nokia Oyj, which he had won step by step in the last two years.

“We didn’t expect that the US authorities would attack Huawei so decisively. We didn’t expect the States to deliver such a massive blow to our supply chain – not only block the supply of components, but also access to international organizations,” Bloomberg quoted Ren Zhenfei.

Read also: US sent Ukraine medical equipment for hospitals

Huawei intends to intensify the release of its own chips, as well as to look for alternative opportunities to preserve its competitive advantages in both the smartphone sector and the 5G segment.

"We do not expect that the damage will be serious. By 2021, we will be reborn," said Ren Zhengfei.

Recently, the White House Administration sent an official letter to the US Congress announcing the postponement of some of the sanctions against Huawei. In this case, the restrictions will be implemented within two years.

Leave a Reply

Your email address will not be published. Required fields are marked *