Huawei will miss sales forecasts by about $30 billion over the next couple of years because of a US campaign against its business, the founder and CEO of the Chinese tech company said Monday.
“In the next two years, I think we will reduce our capacity, our revenue will be down by about $30 billion compared to the forecast, so our sales revenue this year and next year will be about $100 billion,” Ren Zhengfei said during a panel discussion at Huawei’s headquarters in Shenzhen.
Sales last year grew by about 20% to 721 billion yuan ($104 billion).
The embattled Chinese tech firm has since become a flashpoint in the US-China trade war. The Trump administration delivered a huge blow on May 16, when it added Huawei to a blacklist that bars US companies from selling it technology without first obtaining a US government license.
Washington fears that Beijing could use its equipment to spy on other nations and it’s been pressuring allies to shut the company out of next generation super-fast 5G wireless networks. Huawei has repeatedly denied that any of its products pose a risk to national security.
Despite being locked out of the US market for nearly a decadebecause of those concerns, Huawei grew into the world’s largest telecommunications equipment maker and the No. 2 smartphone brand.
But just four weeks on the US trade blacklist is hitting the company hard, hurting its smartphone business and eroding its dominance in 5G equipment.
Overseas smartphone unit sales have “dropped by 40%,” Ren said. A company spokesman said that Ren was referring to a fall in sales between May 17 and June 16, compared to the month to May 16.
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