Huawei could lose $ 10 billion because of the US ban

Huawei said the impact of the US ban on business operations was less than initial fear but could also cost the company $ 10 billion.

Huawei’s smartphone business has been badly hit since mid-May 2019 after Washington put the company on the Entity List list, threatening to block the supply of necessary technology from the US.

In June 2019, the founder and CEO Nham Phi Phi said Huawei could reduce $ 30 billion in revenue. However, recently, Eric Xu, Huawei Vice President, said the damage was a bit lower. The personal customer department – including the smartphone division – is much better than the initial concern. He revealed that sales are likely to drop by $ 10 billion. In 2018, the division brought in 349 billion Yuan in revenue.

Thanks to many promotions and patriotism, Huawei smartphone sales in China increased by nearly one third compared to the previous year, reaching a record high in the second quarter of 2019, partly offset the loss in the whole market. bridge. Last month, Huawei said its personal customer division reached 221 billion yuan in the first half of 2019.

This week, Washington renewed its temporary license for Huawei for an additional 90 days for the company to continue buying from the US. However, President Trump’s administration added 40 other Huawei branches to the blacklist. Xu said it was “meaningless” for Huawei because employees were prepared to live and work with the ban.

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