Life has not been easy for Huawei these past six months and that’s showing up in the revenue figures.
And it looks like things aren’t getting any easier anytime soon according to their forecasts.
Revenue was up 13% for the June period which is down from the 39% of the previous period. As Bloomberg reports, these are the first numbers to come from the company since the US government started to levy tariffs and challenging the company on every front. A lot of the future problems coming down the road have to do with the company’s supply chain as well as potentially being locked out of the Android ecosystem. This has forced the company to consider developing its own OS and app store, among other things. And let’s not forget that all of these issues are going to potentially whip back on US manufacturers like Apple if and when China decides to retaliate in that way.
Chairman Liang Hua said in an interview with Bloomberg, “We don’t know when the U.S. government will make the decision on Android and when that decision will come…If we are not able to use Android for our new smartphones, we have the ability to develop our own operating system.”
In addressing the supply chain concerns, “The entity list had put a disruptive challenge to our supply chain. The difficulties and complex of supply chain changes are huge.”
For the rest of 2019 the company is thinking things will continue to be tough but they’re forging on ahead with their releases and new smartphones. The company is also making contingency plans for the worst of the worst which would see it having to manage its own OS among other things. The Bloomberg reports said that it is devoting some 10,000 engineers to that problem alone.
Of course, we’ll update you on the events as things unfold but it looks like the restrictions on Huawei are finally starting to impact the bottom line.
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