Home Business & Finance Huawei to Lose $30 Billion Because of Ban

Huawei to Lose $30 Billion Because of Ban

Huawei to Lose $30 Billion Because of Ban

Although Huawei was targeting to become world’s largest smartphone manufacturer by the end of this year, recent U.S. ban means the company will need to rethink its strategies going forward. Shortly after the ban, reports claimed that the company has cut down its smartphone production, executives of the company dismissed the rumors. While we’ll have to wait to see if that’s the case, the company has now reduced its revenue forecast by $30 billion for the current year.

According a report by Reuters, Huawei’s founder and CEO Ren Zhengfei said that the company was forced to reduce its revenue projection by $30 billion as it will ship up to 60 million fewer devices this year due to the recent ban. While the company expected such bans, he revealed that it didn’t anticipate such attacks on its business practices. However, he expects that Huawei could go through a business revival in 2021.

Zhengfei’s latest comments came as this is the first instance where Huawei has admitted the impact on the company following the latest ban from. However, the news shouldn’t surprise anyone considering the embargo prevents any U.S. company conducting business activity with Huawei. As Android manufacturers are reliant on different U.S. companies for different products, Huawei is forced to scour for alternatives for its smartphone business. Earlier this month, the company claimed that it might release its own smartphone operating system in the coming months.

Recently the company filed for trademarks in different regions to bring its own operating system. While we will have to wait to find out if that’s the case, the company is planning on expanding its existing app store offerings for customers going forward by inviting developers to release their apps on the platform.

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