Huawei founder says US ban will cost them $30 billion for the next 2 years
Huawei is finding itself in a tight spot with the U.S ban. While efforts are underway to rebound from the damage as quickly as possible, the short term damages to the company’s revenue are incredibly drastic. According to the latest announcement by Huawei’s CEO Ren Zhengfei, it will cost the Chinese tech giant around $30 billion in the next 2 years alone due to the ban imposed by the U.S.
Huawei has been banned in the U.S by the Trump Administration and soon afterwards, almost all the Silicon Valley giants including Google, Facebook, and many others followed suit to sever ties with the company. This has forced Huawei to go back to the drawing board and quickly resume work on its own OS called HongMeng which is reportedly 60% faster than the vanilla Android and other Chinese manufacturers such as OPPO and Vivo have already expressed interest. But these efforts may not prevent the damage that is about to befall Huawei.
Ren made the announcement in an event hosted by Huawei called “A Coffee with Ren” where he also said that smartphone sales in countries throughout the world have dropped by 40%. It is questionable whether Huawei will remain the 2nd largest brand in the mobile industry. Unless the ban is removed within the next 2 months, Huawei could be facing a major downslide in revenues from this particular segment.
The entire discussion can be viewed here.
Ren said that the company would rebound in the subsequent years after its products have had a complete makeover. Till then, things look gloomy for the Chinese manufacturer.
Do you think Huawei will be able to maintain its spot as world number 2? If not, will it be able to bounce back in subsequent years?