Huawei. The problems that the Asian company is going through are becoming more and more serious, and this in the conditions where great efforts are being made so that the situation is not as serious as it was thought. I told you yesterday that the US intends to apply new sanctions against China as part of the trade war between the two companies, and this greatly affects the activity of the Huawei company at the global level, as we have already seen.
Huawei. The company's phone sales have been falling in recent months, and Donald Trump wants to deal a new blow to the Chinese company with the decision to impose new tariffs against China, but that's not all. Australia recently announced a decision to support the US and the bans imposed against Huawei, as bans are being prepared there that would affect the Chinese even more.
HUAWEI'S PROBLEMS ARE DEEPING, HOW THE PHONES ARE AFFECTED
Huawei. The US tried to destroy the Chinese division that produces 5G equipment, but paradoxically they managed to affect only the one that produces mobile phones, where sales and profit are reduced. Completely unexpectedly, the division that produces 5G equipment was the one that generated the highest sales for the entire Huawei group, a sign that the warnings about the danger of their equipment were not understood.
Huawei. However, phones bring a good part of the Chinese company's quarterly revenues, and a 60% drop in them internationally is an extremely serious problem, because China cannot supply them indefinitely. In Q2 2019, China covered to a good extent the decrease in Huawei's phone sales globally, but everything has a limit, including the pockets of the Chinese, so in the coming months we could see how strong the impact of the USA is.
Huawei. Those who have phones now do not know if they will receive updates for them, those who do not, are thinking whether to buy them or not, and this uncertainty generates all these problems for customers.
