Huawei. The day started with a series of extremely important revelations regarding the company and its phones, which are going through a series of very serious problems at the moment, unfortunately. Considering that the situation is a very serious one, including the founder of the company, Ren Zhengfei, spoke about it, announcing that the international sales of Huawei's phones fell by 40% in the last month, and could reach up to 60% until the end of 2019.
Huawei. This is the first time that a company official confirms how big the problem is with phone sales outside China, and since half of the total comes from outside this country, the situation becomes critical. Huawei aimed to increase this year's revenue by 30% based on a substantial increase in phone sales, but this goal has disappeared, and the company only expects to maintain its total revenue from 2018.
Huawei founder CONFIRMS a BIG PROBLEM for Phones
Huawei. More precisely, the company hopes to achieve revenues of 125-130 billion dollars in 2019, compared to 100 billion in 2018, but in the end it will be satisfied with the same figure, or with one quite close. The drop in sales for Huawei's phones is even greater than even those there imagined, so everyone was taken by surprise by the power the US had with the sanctions it imposed.
"Ren's downbeat assessment that the ban will hit revenue by $30 billion... Huawei, which turned in a revenue of 721.2 billion yuan ($104 billion) last year, expects revenue of around $100 billion this year and the next, Ren said. This compares to an initial target for a growth in 2019 to between $125 billion and $130 billion depending on foreign exchange fluctuations. Huawei's smartphone sales have, however, been hit by the uncertainty. Ren said the firm's international smartphone shipments plunged 40%. While he did not give the time period, a spokesperson clarified the CEO was referring to the past month."
Huawei. Interestingly, there are currently no plans in the company to lay off employees, though the laptop division has suspended activity because products of this kind can no longer be launched due to sanctions. The other divisions of the Huawei company continue to operate, although the problems are identical outside of China, but as the sanctions will begin to make their effects felt more and more, it is possible that the strategies will change.
Huawei. It is quite clear that no one within the company imagined that the sanctions imposed by the USA would have such a big impact, but also that those purchased components would not be able to be used in the products, and thus the strategy changes completely.
