We’ve got a price tag for all of that excitement surrounding Huawei and the US trade sanctions, and it is going to cost the company an absolute ton of money. Some $USD 30 billion according to reports.
Not only is the US ban a loss of some $USD 30 billion in revenue but also a 40% drop in smartphones shipped out by a company that was surging ahead of the pack in terms of overall production and global distribution.
The Verge also reports that these numbers were confirmed by Huawei’s CEO Ren Zhengfei who said that there were no plans currently to cut back on staffing despite the massive revenue setback.
Reuters quoted the CEO describing his company’s current woes, saying, “We did not expect they would attack us on so many aspects,” Ren said, adding he expects a revival in business in 2021. …We cannot get components supply, cannot participate in many international organizations, cannot work closely with many universities, cannot use anything with U.S. components, and cannot even establish connection with networks that use such components.”
As we’ve reported, Huawei has faced cuts in access to Google’s Android OS and Google Play infrastructure as well as hard components and technologies needed to make smartphones work. Being at the central of an ongoing trade dispute was probably never going to be an easy thing, but these numbers from Huawei reveal just how much of an impact it is having on what was a rising star in the smartphone world.
Of course, we’ll continue to follow this story and especially how it impacts smartphones going forward. We’d also love to know your thoughts about the whole thing or whether you’ve used a Huawei smartphone or currently own one. Let us know in the comments.[The Verge, Reuters]