The U.S. administration’s ban on Huawei has thrown a spanner in the works of one of the world’s fastest growing smartphone vendors. The company has put forward some figures which suggest that the ban has had a more negative effect than originally anticipated. The company has cut its revenue forecast by $30 billion and also expects to ship up to 60 million fewer devices this year.
Huawei founder and CEO Ren Zhengfei has said that the company has cut its revenue expectations for the year. He says that the ban is going to trim revenues by $30 billion. “We did not expect they would attack us on so many aspects,” Ren said, predicting that Huawei could see a business revival in 2021.
This is the first time that Huawei has put a solid figure on the impact of the U.S. ban. The ban prevents suppliers in the United States from conducting business with Huawei unless they have been given special approval by the government.
This has resulted in Huawei’s access to Android being curtailed and even Facebook no longer allowing the company to pre-install its apps on its devices, among other business complications. Huawei’s smartphones were never really made available in the U.S. market in the first place.
The company was seeing exceptional growth elsewhere, though, and was steaming ahead in its aim to replace Samsung as the world’s top smartphone vendor. Huawei now feels that this may not be possible. Bloomberg reports that the company now expects to deliver between 40 to 60 million fewer devices this year.