Home News Science&Tech US ban costs Huawei billions: "We are just like a badly damaged aircraft"

US ban costs Huawei billions: "We are just like a badly damaged aircraft"

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The American ban on doing business with the Chinese telecom giant Huawei has major consequences. The founder of the company, Ren Zhengfei, thinks his business will generate $ 30 billion less in revenue in the next two years than previously expected.

The annual turnover in 2018 was $ 107 billion. For this year, the company expected a turnover of 125 billion a few months ago, but the CEO now thinks 100 billion. "I never expected such extreme measures against our company," said Zhengfei. "Nobody wins here."

Zhengfei compares his company with a heavily damaged aircraft, to emphasize how big the consequences are. He also said that his company will reduce production capacity. Huawei sells virtually no devices in the US, but the country is important because there are many suppliers that the Chinese manufacturer works with.

What about the conflict between the US and Huawei? Previously NOS popped 3 deeper in the matter:

In May, the US announced a ban on doing business with Huawei. President Trump accuses the Chinese telecom giant of espionage. The decision immediately led to the revocation of the Android license by Google. The consequences of the ban are likely to be felt from the second half of August.

Basically, Huawei can still use the Android operating system, but essential components such as Google services such as Gmail and Google Maps and the Play Store app store are no longer included. This makes devices much less interesting for consumers.

40 to 60 percent less

Bloomberg news agency reported last night that the company's sales managers are also taking into account a sharp fall in sales outside of China. The company is said to be bracing for a decrease of 40 to 60 percent.

Huawei is not only popular in Asia, but also in Europe. On Friday, the newest flagship of the company, the Honor 20, goes on sale in a number of European countries. The launch is closely monitored; it is taken into account that the telephone will sell badly and that stocks must be reduced. The two largest telecom providers in France are not participating.

Decline in interest

Dutch comparison sites previously informed the NOS that they saw a decrease in interest in the devices. The same image was visible at Belsimpel and Mobiel.nl. Smartphone analyst Tim Wijkman thinks it's too early for conclusions about the actual impact.

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