Huawei Prepares for 40%-60% Fall in International Smartphone Shipments

Huawei Ban US Chipmakers Said to Be Quietly Lobbying to Ease Restrictions

President Donald Trump's administration has essentially banned Huawei from the huge U.S. market and barred American tech companies from supplying the Chinese company with vital components without permission from Washington.

Ren said the United States is also limiting the company's cooperation with USA universities, some of which have cut research partnerships with Huawei in recent months.

Huawei's American chip suppliers, including Qualcomm and Intel, are quietly pressing the USA government to ease its ban on sales to the Chinese tech giant, even as Huawei itself avoids typical government lobbying, people familiar with the situation said.

In response, Huawei brought a lawsuit in the USA this March challenging the constitutionality of a national security law which prevents the US government and its contractors from using Huawei equipment.

He added that the company expected revenues of about $100 billion annually for the next two years, compared to $105 billion in 2018.

"We can not get components supply, can not participate in many global organizations, can not work closely with many universities, can not use anything with USA components, and can not even establish connection with networks that use such components".

We didn't expect the USA would hit our supply chain in such a wide way - not only blocking the component supplies, but also our participation in worldwide organizations", Ren said (h/t: "Bloomberg).

"We didn't expect the USA would so resolutely attack Huawei".

While Ren denies that Huawei would share user data with the Chinese government if ordered to do so, Washington has been trying to convince its allies to exclude Huawei from their upcoming 5G rollout.

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But the ruling military council, which acknowledged that security forces committed violations, strongly rejected the idea. Both officials spoke on condition of anonymity because they were not authorised to talk about ongoing investigations.

The ruling limits Huawei's access to components and means its handsets will no longer receive updates for the Android operating system from Google or access to its popular applications.

"For technologies that do not relate to national security, it seems they shouldn't fall within the scope of the order".

Ren had previously claimed that Huawei had been stockpiling computer and mobile chipsets as well as other electronic components and that doing so would insulate from the ban, which had always been predicted.

"It is about something else", Negroponte added.

But a new Bloomberg report puts some hard numbers to this issue, too, claiming that Huawei's smartphone business will experience a massive sales plunge of 40 million to 60 million units in 2019, nearly exclusively outside of China.

Huawei's smartphone sales have, however, been hit by the uncertainty.

Marketing and sales managers at the tech giant are internally expecting a drop in volumes of anywhere between 40 million to 60 million smartphones this year, the report said.

Mr Ren, however, said Huawei will not cut research and development spending despite the expected hit to the company's finances and would not have large-scale layoffs.

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