The world’s second largest phone makers, Huawei, has revealed that the Chinese company will lose about $30billion in the next two years due to the US’ stringent ban on its products and services. Huawei’s founder said Monday that the Chinese telecom giant’s revenue will be $30 billion less than forecast over the next two years, as he compared the company to a “badly damaged plane” as a result of U.S. government actions against it.
“We never thought that the U.S.’s determination to attack Huawei would be so strong, so firm,” Ren Zhengfei, who is also the CEO, said during a panel discussion at the company’s headquarters in Shenzhen, China.
Ren said Huawei will reduce capacity and expects revenue of about $100 billion annually for the next two years, compared with $105 billion in 2018. In February, he said the company was targeting $125 billion in 2019.
Huawei’s overseas cellphone sales will drop by 40%, Ren said, confirming a Bloomberg report published Sunday. But the Chinese market is growing rapidly, he said, and Huawei will not allow restrictive measures to curb its research and development.
The Donald Trump led US Administration this year, imposed a ban on all Huawei cellphones and component sales and also warned US based companies and its allies to avoid doing business with Huawei as the Chinese company spies on other governments using its equipments on the request of the Chinese government.