Huawei Expects a $10 Billion Loss As a Result of The US Ban

Huawei, the world’s second-largest smartphone maker, has again provided estimates of the impact of the on-going trade ban. But this time, the estimates are much lower than initially anticipated back in June. In the first assessment, Huawei’s CEO and Founder Ren had projected the company’s smartphone unit revenue to dip by $30 billion.

However, Huawei’s Deputy Chairman on Friday at a conference in Shenzen stated that the company now expects a little less impact than the initial projections.

“It seems it is going to be a little less than that. But you have to wait till our results in March… But a (sales) reduction of more than $10 billion could happen,” said Eric Xu, Huawei’s deputy chairman.

Despite the inclusion of the company in the Entity List which threatens to cut off supplies of essential components from US-based companies, Huawei shipped 118million smartphones thanks to the patriotic purchases of their devices in the Chinese market.

Huawei’s smartphone sales in China increased by nearly a third Year-over-year hitting a new record high, which compensated for the stalled global shipments.

Recently, Huawei received another 90-day extension to its temporary trade license from the US Department of Commerce. The extension was aimed at allowing the company to continue maintaining existing telecommunications networks and provide software updates to their handsets.

Eric Xu referred to the reprieve as “meaningless” to the company since their employees are “fully prepared” to work and live by the ban.

Featured Image: Reuters

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Alvin Wanjala

Alvin Wanjala has been writing about technology for over 2 years. He writes about different topics in the consumer tech space. He loves streaming music, programming, and gaming during downtimes.

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