Ren Zhengfei, CEO and founder of Huawei, has offered numerous details regarding the position of his company against the blockade imposed by the Trump Administration of the USA. In a talk of more than an hour and a half, Ren has confirmed the important impact that the blockade will have and how the Chinese manufacturer will not be able to achieve the goals planned for this year.
“In the next two years, I think we will reduce our capacity, our revenues will be reduced by around 30 million dollars compared to the forecasts, so our sales revenues this year and next will be around 100 billion dollars. dollars “, explained the CEO of Huawei.
The CEO of Huawei offers an updated forecast for 2019 taking into account the blockade
It is the first time that Huawei puts official numbers to the impact that the US blockade will have on its accounts . And although these numbers are very significant, Ren has also explained that “the company will remain strong.”
Through sources consulted by Bloomberg, it was considered that Huawei’s sales at the international level could decrease between 40 and 60 million mobile phones sold. Some numbers that have been confirmed by Huawei approximately when asked by journalists about the international forecasts for this year: “Yes, they have been reduced by 40%”, confirmed Ren.
LIVE NOW: Ren Zhengfei holds discussion in Shenzhen https://t.co/m2fFkcJNiG
— Huawei (@Huawei) June 17, 2019
According to Huawei data, in 2018 they sold 206 million units between the Huawei brand and Honor.
The global perspective is not the best for Huawei and according to Bloomberg, it could affect the next launch of the Honor 20 scheduled for the end of this month of June.
“We did not expect to be attacked in so many ways, we can not obtain component supplies, we can not participate in many international organizations, we can not work in close collaboration with many universities, we can not use anything with the components of the US, and we can even establish connection with networks that use these components “, said Ren regarding the strong blockade imposed.
In contrast, Ren explained that ” growth in China is being very fast”and according to the data offered by the Chinese embassy, revenues from the Asian country account for 50%.
I'm listening to Huawei's founder Ren Zhengfei host coffee at their Shenzhen HQ. He cuts revenue estimate this year from $120bn to $100bn. “We didn’t think that the US would attack Huawei with such great strategy and determination" https://t.co/obQygYrZxt (1/n) pic.twitter.com/mO5uJbNWef
— Yuan Yang (@YuanfenYang) June 17, 2019
Huawei had an income last year of 721.2 billion yuan, about 104.16 billion dollars. A growth of 19.5% compared to 2017. However, the forecasts for this 2019 and the next 2020 will remain around 100 billion dollars, as confirmed by Ren Zhengfei.
This represents a drop of 30 million in two years according to the CEO of Huawei and about 20 million dollars less for this year if we compare the old forecasts of 125 million dollars with respect to 105 million of 2018 revenues.
“By 2020 we will recover the moment” and ” in 2021, we will recover our vitality and (we will continue) providing our services to the human society”. Two years of recovery for a Huawei that its founder has compared with a large damaged aircraft.
Ren has also explained that “research and development spending will not be reduced despite the expected impact on the company’s finances.”
Regarding its relationship with the US, the Huawei CEO believes that the ideal is a state of “open cooperation” and for the future it is” more determined to work and collaborate with US companies, even though there are partners that can change their position”. A relationship that would be reciprocal because according to Reuters, multiple semiconductor manufacturers such as Qualcomm or Intel would be pressing the US government to end the blockade of Huawei.