On Monday, during a live-streamed panel discussion, Ren Zhengfei Huawei Technologies founder and CEO said the company expects revenue to take a $30 Billion hit this year and next year.
His comment confirms an earlier report from Bloomberg, which cited anonymous sources who said that the Chinese telecoms giant is bracing for a 40% to 60% drop in global smartphone shipments. Ren blamed the decline in revenue on the U.S. decision to add Huawei to a list of companies that are essentially banned from buying US-made technology.
“We didn’t expect the U.S. to attack Huawei with such intense and determined effort. We are not only banned from providing targeted components but also from joining a lot of international organizations, collaborating with many universities, using anything with American components or even connecting to networks that use American parts,” said Ren at the panel.
That said, Ren was confident that Huawei’s output would be “rejuvenated” by 2021. And while he was not expecting the severe ban, Ren said it would not stop the company from moving forward.
“We are like a damaged plane that protected only its heart and fuel tank but not its appendages. Huawei will get tested by the adjustment period and through time. We will grow stronger as we make this step.”