Huawei expects $30B revenue hit, 60M fewer phones sold due to US ban

Posted:
in General Discussion
Founder Ren Zhengfei says Huawei will cut back on production while it works to find alternatives including developing its own smartphone OS, forcing a drop in revenues of $30 billion.




Ren Zhengfei, founder of Huawei, has predicted that the US ban on his company will mean its revenues will drop by $30 billion and smartphone sales will fall by up to 60 million devices. He said that the figures will be the same for this year and next, but that the company's profits would rise again after 2020.

"In the next two years, I think we will reduce our capacity," he said in a speech translated from Mandarin by Huawei and seen by CNBC, "our revenue will be down by about $30 billion compared to forecasts, so our sales revenue due this year and next will be about $100 billion."

Huawei sold 206 million phones in 2018, with almost half of that being international sales outside its home country of China.

Currently, the US government has blocked Huawei from using American technology, though at times it has eased those restrictions.

CNBC says that Huawei has been stockpiling US components needed for its smartphones, but this can only be a short-term measure. It also doesn't address how Google has revoked Huawei's Android licence, meaning that its phones cannot use services ranging from Google search to Gmail.

"We didn't expect the damage to be this serious," said Ren Zhengfei in a discussion reported by Bloomberg. "We did make some preparations, like [a] damaged plane [analogy]. We only protected the engine and fuel tanks, but failed to protect other parts."

Huawei is due to launch its new Honor 20 phone across Europe on June 21, but Bloomberg reports that some cell carriers in France have dropped plans to sell and support it.

Nonetheless, Zhengfei says that over the next two years, the company will recover from the losses caused by the ban.

"We are going to do a lot of switch over of different product versions that will take time to ramp up," he said, "and it will take some time to test whether that works. After that step, we will be stronger. We are strong, I think there is no way we can be beaten to death."

Zhengfei did not detail how the company will replace US sources of components, but Huawei is developing its own alternative to the iOS and Android operating systems.
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Comments

  • Reply 1 of 43
    avon b7avon b7 Posts: 4,302member
    It is a shame that long term, the damage will rebound onto U.S companies. Long after Trump has gone, U.S companies will be seeing lower revenues as rivals ramp up homegrown variants of products that are currently sourced in the U.S.

    The idea of a global supply chain has taken a hit and everyone will suffer but those with more to lose are in the U.S. 

    I think Broadcom put a number of $2 billion usd in lost revenues. Some companies have lost almost half their revenues. One U.S senator said U.S jobs would be lost forever. 

    We'll see how it plays out  in the short term though as tariffs in general are already hurting U.S business. Hundreds of companies have written to the government asking for tariff increases to be stopped.

  • Reply 2 of 43
    racerhomie3racerhomie3 Posts: 1,169member
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    gutengelArloTimetravelerlkruppmwhitemagman1979AppleExposedanantksundaramentropysradarthekatwatto_cobra
  • Reply 3 of 43
    gutengelgutengel Posts: 340member
    Good!
    AppleExposedanantksundaramwatto_cobra
  • Reply 4 of 43
    avon b7avon b7 Posts: 4,302member
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.

    If you want to make China 'bleed' and change, as you say, you (and anyone else who shares that opinion) can contribute to that directly by refusing to buy anything Made in China. 

    However, I doubt you are willing to do that and probably have a fair few products that are made in China or require Chinese patents.

    In the absence (a very long absence) of national security evidence to actually support Trump's claims, together with his very open admittance to seeing Huawei possibly included in a trade deal, the conclusion is clear and countries around the world have taken note. 

    Then there is this angle:

    https://www.reuters.com/article/us-huawei-tech-usa-lobbying/u-s-chipmakers-quietly-lobby-to-ease-huawei-ban-sources-idUSKCN1TH0VA




    edited June 17
  • Reply 5 of 43
    magman1979magman1979 Posts: 1,152member
    Ah, perfect news to start my week!!
    AppleExposedanantksundaramwatto_cobra
  • Reply 6 of 43
    magman1979magman1979 Posts: 1,152member
    avon b7 said:
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.

    If you want to make China 'bleed' and change, as you say, you (and anyone else who shares that opinion) can contribute to that directly by refusing to buy anything Made in China. 

    However, I doubt you are willing to do that and probably have a fair few products that are made in China or require Chinese patents.

    In the absence (a very long absence) of national security evidence to actually support Trump's claims, together with his very open admittance to seeing Huawei possibly included in a trade deal, the conclusion is clear and countries around the world have taken note. 

    Then there is this angle:

    https://www.reuters.com/article/us-huawei-tech-usa-lobbying/u-s-chipmakers-quietly-lobby-to-ease-huawei-ban-sources-idUSKCN1TH0VA




    Oh look, the pro-Chinese spin-doctor JUMPS right into ANY topic that has any negative connotation regarding China and get's hard to work spin-doctoring and spreading hyperbole!

    Unbelievable...

    BTW, as much as I loath and detest Trump, he is right about China and Huawei. It's an established FACT that Huawei has very close PRC ties, and by their own LAWS, is obligated to undertake any actions the state demands of them, including espionage, with threat of imprisonment of top officials if they attempt to deny the request.

    Also, let's not forget them taking direct research funding from the Chinese military, and also providing the surveillance technology now enslaving citizens in multiple South African countries.

    Your ignorance is unbelievable.
    edited June 17 tmayStrangeDaysAppleExposedanantksundaramNoFliesOnMeradarthekatwatto_cobra
  • Reply 7 of 43
    maestro64maestro64 Posts: 4,678member
    Yes, we have to wait and see how this all plays out. China is playing a long game and US is always short sighted games since we have way too many decision makers and they always changing. However, if Huawei actually will loose $30B they is the total of the US tariff on all the current imports. One US action against one company equally all the pain the US companies are dealing with at present. It also looks like the US got the France to not sell their products. This could become very costly for China, I wonder how much China is are willing absorb before they decide they can no longer openly steal from US companies.
    magman1979anantksundaramradarthekat
  • Reply 8 of 43
    tmaytmay Posts: 3,982member
    avon b7 said:
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.

    If you want to make China 'bleed' and change, as you say, you (and anyone else who shares that opinion) can contribute to that directly by refusing to buy anything Made in China. 

    However, I doubt you are willing to do that and probably have a fair few products that are made in China or require Chinese patents.

    In the absence (a very long absence) of national security evidence to actually support Trump's claims, together with his very open admittance to seeing Huawei possibly included in a trade deal, the conclusion is clear and countries around the world have taken note. 

    Then there is this angle:

    https://www.reuters.com/article/us-huawei-tech-usa-lobbying/u-s-chipmakers-quietly-lobby-to-ease-huawei-ban-sources-idUSKCN1TH0VA




    Oh look, the pro-Chinese spin-doctor JUMPS right into ANY topic that has any negative connotation regarding China and get's hard to work spin-doctoring and spreading hyperbole!

    Unbelievable...

    BTW, as much as I loath and detest Trump, he is right about China and Huawei. It's an established FACT that Huawei has very close PRC ties, and by their own LAWS, is obligated to undertake any actions the state demands of them, including espionage, with threat of imprisonment of top officials if they attempt to deny the request.

    Also, let's not forget them taking direct research funding from the Chinese military, and also providing the surveillance technology now enslaving citizens in multiple South African countries.

    Your ignorance is unbelievable.
    Here's a current article on Chinese export of their brand of Authoritarianism, and a small note in it on Huawei.

    https://www.baldingsworld.com/2019/06/17/is-china-exporting-authoritarianism/

    Kudos to whomever in the U.S. Government that decided to use Huawei as a pressure point in the trade negotiations, and not just security concerns. I doubt that they could have imagined how badly China overreacted; almost like Huawei was the CCP's most favored child.
    magman1979anantksundaramNoFliesOnMewatto_cobra
  • Reply 9 of 43
    JFC_PAJFC_PA Posts: 359member
    I’d much prefer something like this be done in solid physical evidence, or documented vide, rather than rumor and speculation. Like those “spy chips” were never actually showed were they?

    and any tariffs “paid” will be paid by US, the American consumer. So that blows. More tax increases for all! Not a yay moment. 
    edited June 17
  • Reply 10 of 43
    StrangeDaysStrangeDays Posts: 8,804member
    avon b7 said:
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.
    Nah. As you know, the heads of six US intelligence agencies have explained to senators that it’s about a security threat, due to your knockoff hero’s allegiance to the murderous, authoritative regime that is the Communist Party. I know they’re apparently your role model, but giving our comms over to them is suspect.

    People like you and the other feller had no problem accepting US intelligence findings when they told us Russia helped get Trump elected. But now that your heroes are the subject of scrutiny all of a sudden you refuse to accept that their investigations made it a good bet that the chinese communist party cannot be trusted.

    We call this “cognitive dissonance”. 
    AppleExposedmagman1979anantksundaramNoFliesOnMeradarthekatwatto_cobra
  • Reply 11 of 43
    StrangeDaysStrangeDays Posts: 8,804member

    avon b7 said:
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.

    If you want to make China 'bleed' and change, as you say, you (and anyone else who shares that opinion) can contribute to that directly by refusing to buy anything Made in China. 

    However, I doubt you are willing to do that and probably have a fair few products that are made in China or require Chinese patents.

    In the absence (a very long absence) of national security evidence to actually support Trump's claims, together with his very open admittance to seeing Huawei possibly included in a trade deal, the conclusion is clear and countries around the world have taken note. 

    Then there is this angle:

    https://www.reuters.com/article/us-huawei-tech-usa-lobbying/u-s-chipmakers-quietly-lobby-to-ease-huawei-ban-sources-idUSKCN1TH0VA




    Oh look, the pro-Chinese spin-doctor JUMPS right into ANY topic that has any negative connotation regarding China and get's hard to work spin-doctoring and spreading hyperbole!

    Unbelievable...

    BTW, as much as I loath and detest Trump, he is right about China and Huawei. It's an established FACT that Huawei has very close PRC ties, and by their own LAWS, is obligated to undertake any actions the state demands of them, including espionage, with threat of imprisonment of top officials if they attempt to deny the request.

    Also, let's not forget them taking direct research funding from the Chinese military, and also providing the surveillance technology now enslaving citizens in multiple South African countries.

    Your ignorance is unbelievable.
    Seriously. How do these astroturfers expect us to forget this fact?
    AppleExposedmagman1979radarthekatwatto_cobra
  • Reply 12 of 43
    AppleExposedAppleExposed Posts: 1,687unconfirmed, member
    avon b7 said:
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.
    Nah. As you know, the heads of six US intelligence agencies have explained to senators that it’s about a security threat, due to your knockoff hero’s allegiance to the murderous, authoritative regime that is the Communist Party. I know they’re apparently your role model, but giving our comms over to them is suspect.

    People like you and the other feller had no problem accepting US intelligence findings when they told us Russia helped get Trump elected. But now that your heroes are the subject of scrutiny all of a sudden you refuse to accept that their investigations made it a good bet that the chinese communist party cannot be trusted.

    We call this “cognitive dissonance”. 

    And he isn't as crazy as some of the iKnockoff Knights I've seen.

    Some are hoping for the fall of the United States just to see Apple go down with them.
    Some are hoping Apple is targeted for some reason, even though Apple has nothing to do with this mess.
    Others claim Huawei will never spy and is a moral company even though they run android.
    magman1979watto_cobra
  • Reply 13 of 43
    avon b7avon b7 Posts: 4,302member
    avon b7 said:
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.
    Nah. As you know, the heads of six US intelligence agencies have explained to senators that it’s about a security threat, due to your knockoff hero’s allegiance to the murderous, authoritative regime that is the Communist Party. I know they’re apparently your role model, but giving our comms over to them is suspect.

    People like you and the other feller had no problem accepting US intelligence findings when they told us Russia helped get Trump elected. But now that your heroes are the subject of scrutiny all of a sudden you refuse to accept that their investigations made it a good bet that the chinese communist party cannot be trusted.

    We call this “cognitive dissonance”. 
    They explained there fears. Not much else.

    So little in fact that no foreign state that has asked for evidence, actually received any.

    Now the U.S is reaping the consequences of its 'national security' actions with many EU foreign ministers asking for an independent investigation into the oil tanker attacks.

    With Huawei we are talking pure unadulterated protectionism and absolutely nothing else.
  • Reply 14 of 43
    magman1979magman1979 Posts: 1,152member
    avon b7 said:
    avon b7 said:
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.
    Nah. As you know, the heads of six US intelligence agencies have explained to senators that it’s about a security threat, due to your knockoff hero’s allegiance to the murderous, authoritative regime that is the Communist Party. I know they’re apparently your role model, but giving our comms over to them is suspect.

    People like you and the other feller had no problem accepting US intelligence findings when they told us Russia helped get Trump elected. But now that your heroes are the subject of scrutiny all of a sudden you refuse to accept that their investigations made it a good bet that the chinese communist party cannot be trusted.

    We call this “cognitive dissonance”. 
    They explained there fears. Not much else.

    So little in fact that no foreign state that has asked for evidence, actually received any.

    Now the U.S is reaping the consequences of its 'national security' actions with many EU foreign ministers asking for an independent investigation into the oil tanker attacks.

    With Huawei we are talking pure unadulterated protectionism and absolutely nothing else.
    Once again your sure ignorance, spin-doctoring and pro-China hyperbolic rhetoric are on FULL display!

    People like you need to get a fucking clue, or STFU.
    AppleExposedanantksundaramNoFliesOnMeStrangeDaysradarthekatwatto_cobra
  • Reply 15 of 43
    magman1979magman1979 Posts: 1,152member

    tmay said:
    avon b7 said:
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.

    If you want to make China 'bleed' and change, as you say, you (and anyone else who shares that opinion) can contribute to that directly by refusing to buy anything Made in China. 

    However, I doubt you are willing to do that and probably have a fair few products that are made in China or require Chinese patents.

    In the absence (a very long absence) of national security evidence to actually support Trump's claims, together with his very open admittance to seeing Huawei possibly included in a trade deal, the conclusion is clear and countries around the world have taken note. 

    Then there is this angle:

    https://www.reuters.com/article/us-huawei-tech-usa-lobbying/u-s-chipmakers-quietly-lobby-to-ease-huawei-ban-sources-idUSKCN1TH0VA




    Oh look, the pro-Chinese spin-doctor JUMPS right into ANY topic that has any negative connotation regarding China and get's hard to work spin-doctoring and spreading hyperbole!

    Unbelievable...

    BTW, as much as I loath and detest Trump, he is right about China and Huawei. It's an established FACT that Huawei has very close PRC ties, and by their own LAWS, is obligated to undertake any actions the state demands of them, including espionage, with threat of imprisonment of top officials if they attempt to deny the request.

    Also, let's not forget them taking direct research funding from the Chinese military, and also providing the surveillance technology now enslaving citizens in multiple South African countries.

    Your ignorance is unbelievable.
    Here's a current article on Chinese export of their brand of Authoritarianism, and a small note in it on Huawei.

    https://www.baldingsworld.com/2019/06/17/is-china-exporting-authoritarianism/

    Kudos to whomever in the U.S. Government that decided to use Huawei as a pressure point in the trade negotiations, and not just security concerns. I doubt that they could have imagined how badly China overreacted; almost like Huawei was the CCP's most favored child.
    Great find, thanks for posting this! Unfortunately, it seems content like this is becoming frowned upon more and more because of the successful brainwashing China has managed to accomplish upon the fools of us within North America.
    AppleExposedanantksundaramwatto_cobra
  • Reply 16 of 43
    anantksundaramanantksundaram Posts: 19,416member
    It was laughable a few weeks ago to hear/see the Ren guy’s TV bluster when this was announced, going on with his Baghdad Bob routine. It looks kind of pathetic now. 

    China has awakened the sleeping giant. Xi doesn’t want to acknowledge it yet — he’s in a bind himself — but he knows that he pushed a tad too far, and he sees the writing is on the wall. The faster they can get their act together, the better for them (and everyone else). The ball is in China’s court. 
    tmayAppleExposedmagman1979watto_cobra
  • Reply 17 of 43
    AppleExposedAppleExposed Posts: 1,687unconfirmed, member
    It was laughable a few weeks ago to hear/see the Ren guy’s TV bluster when this was announced, going on with his Baghdad Bob routine. It looks kind of pathetic now. 

    China has awakened the sleeping giant. Xi doesn’t want to acknowledge it yet — he’s in a bind himself — but he knows that he pushed a tad too far, and he sees the writing is on the wall. The faster they can get their act together, the better for them (and everyone else). The ball is in China’s court. 
    I don't know who that is but do you have a video clip of that?


    iKnockoff Knights are acting strangely to this news. It seems they've waved the white flag and finally realized Google has been spying on them and are now praising Huaweis developing OS and hoping it takes down Apple as well for some reason. Thinking Huawei is some sweet innocent angel that would never spy(while ignoring Apple altogether).

    What is your opinion on Huawei being forced to code an OS?

    I think it'll just be another iPhone knockoff but will it be the next Tizen and fail? Will it hurt Google at all?
    StrangeDayswatto_cobra
  • Reply 18 of 43
    tmaytmay Posts: 3,982member
    avon b7 said:
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.

    If you want to make China 'bleed' and change, as you say, you (and anyone else who shares that opinion) can contribute to that directly by refusing to buy anything Made in China. 

    However, I doubt you are willing to do that and probably have a fair few products that are made in China or require Chinese patents.

    In the absence (a very long absence) of national security evidence to actually support Trump's claims, together with his very open admittance to seeing Huawei possibly included in a trade deal, the conclusion is clear and countries around the world have taken note. 

    Then there is this angle:

    https://www.reuters.com/article/us-huawei-tech-usa-lobbying/u-s-chipmakers-quietly-lobby-to-ease-huawei-ban-sources-idUSKCN1TH0VA




    Your opinion isn't universal, and is absolutely wrong.

    Here's what the Australians have to say about that.

    Of course, I've posted this before, but you ignore it because you can't comprehend what National Security Services do.

    https://www.reuters.com/investigates/special-report/huawei-usa-campaign/

    "CANBERRA

    In early 2018, in a complex of low-rise buildings in the Australian capital, a team of government hackers was engaging in a destructive digital war game.

    The operatives – agents of the Australian Signals Directorate, the nation’s top-secret eavesdropping agency – had been given a challenge. With all the offensive cyber tools at their disposal, what harm could they inflict if they had access to equipment installed in the 5G network, the next-generation mobile communications technology, of a target nation?

    What the team found, say current and former government officials, was sobering for Australian security and political leaders: The offensive potential of 5G was so great that if Australia were on the receiving end of such attacks, the country could be seriously exposed. The understanding of how 5G could be exploited for spying and to sabotage critical infrastructure changed everything for the Australians, according to people familiar with the deliberations.

    Mike Burgess, the head of the signals directorate, recently explained why the security of fifth generation, or 5G, technology was so important: It will be integral to the communications at the heart of a country's critical infrastructure - everything from electric power to water supplies to sewage, he said in a March speech at a Sydney research institute.

    Washington is widely seen as having taken the initiative in the global campaign against Huawei Technologies Co Ltd, a tech juggernaut that in the three decades since its founding has become a pillar of Beijing’s bid to expand its global influence. Yet Reuters interviews with more than two dozen current and former Western officials show it was the Australians who led the way in pressing for action on 5G; that the United States was initially slow to act; and that Britain and other European countries are caught between security concerns and the competitive prices offered by Huawei."

    Go back to burying your head in the sand, and pushing Huawei, if that's makes you feel better, but for some of us, we are well aware of the risks.

    anantksundaramStrangeDaysradarthekatmagman1979watto_cobra
  • Reply 19 of 43
    anantksundaramanantksundaram Posts: 19,416member
    It was laughable a few weeks ago to hear/see the Ren guy’s TV bluster when this was announced, going on with his Baghdad Bob routine. It looks kind of pathetic now. 

    China has awakened the sleeping giant. Xi doesn’t want to acknowledge it yet — he’s in a bind himself — but he knows that he pushed a tad too far, and he sees the writing is on the wall. The faster they can get their act together, the better for them (and everyone else). The ball is in China’s court. 
    I don't know who that is but do you have a video clip of that?


    iKnockoff Knights are acting strangely to this news. It seems they've waved the white flag and finally realized Google has been spying on them and are now praising Huaweis developing OS and hoping it takes down Apple as well for some reason. Thinking Huawei is some sweet innocent angel that would never spy(while ignoring Apple altogether).

    What is your opinion on Huawei being forced to code an OS?

    I think it'll just be another iPhone knockoff but will it be the next Tizen and fail? Will it hurt Google at all?
    I honestly cannot figure out what it is you’re saying/asking here 
    edited June 17
  • Reply 20 of 43
    StrangeDaysStrangeDays Posts: 8,804member
    avon b7 said:
    avon b7 said:
    Making China bleed & change is much more important than a few lost jobs.  Intellectual property theft costs the US hundreds of billions of dollars per year.
    The case with Huawei isn't about making China 'bleed'. It is protectionism IMO.
    Nah. As you know, the heads of six US intelligence agencies have explained to senators that it’s about a security threat, due to your knockoff hero’s allegiance to the murderous, authoritative regime that is the Communist Party. I know they’re apparently your role model, but giving our comms over to them is suspect.

    People like you and the other feller had no problem accepting US intelligence findings when they told us Russia helped get Trump elected. But now that your heroes are the subject of scrutiny all of a sudden you refuse to accept that their investigations made it a good bet that the chinese communist party cannot be trusted.

    We call this “cognitive dissonance”. 
    They explained there fears. Not much else.

    So little in fact that no foreign state that has asked for evidence, actually received any.

    Now the U.S is reaping the consequences of its 'national security' actions with many EU foreign ministers asking for an independent investigation into the oil tanker attacks.

    With Huawei we are talking pure unadulterated protectionism and absolutely nothing else.
    Which debriefings did you attend? How long have you been on the security committee?

    LOL. You actually know nothing, Jon Snow. Just an astroturfer campaign. 
    edited June 17 magman1979radarthekatwatto_cobra
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