Huawei is facing a huge problem in Europe due to the Coronavirus, and we are not talking about phone sales, which have fallen all over the globe, not just on this continent. We are now talking about another part of Huawei's business, more precisely the sales of 5G telecommunications equipment, which are also falling after the launches of 5G networks in Europe were postponed due to the new Coronavirus that is keeping many people at home now.
Huawei it relies heavily on its 5G equipment division to continue to generate good earnings despite US sanctions and problems with phone sales. Coronvirus came as a very strong blow, including from this point of view, so that Huawei has little to do now but to help the European countries affected by the new virus to get over the problems faster so that the European economies can restart.
Huawei: The HUGE PROBLEM brought to Europe by the Coronavirus
Huawei had already concluded contracts to supply 5G equipment for some European operators during this period, despite the numerous restrictions recommended by the European Commission. Even so, Huawei had enough customers interested in buying its 5G telecommunications equipment in the next period, but the Coronavirus prevents the creation of 5G infrastructure in Europe, and of course the Chinese are not the only ones affected by this situation.
“Growth at Chinese telecom group Huawei came to a screeching halt in the first three months of the year as the coronavirus outbreak brought the home country into lockdown. It also warned of a delay in rolling out 5G networks in Europe. "In Europe, it will definitely be delayed, we don't know how long," Huawei spokeswoman Evita Cao said. Global 5G development has also been hampered by unsubstantiated claims of an alleged link between 5G and Covid-19.”
Huawei will try to find solutions for this problem in the next period, and this is because there are areas on the globe that are not as seriously affected by the Coronavirus, and there the 5G networks are being created. We are talking about areas in Asia, where many countries have already gone through the pandemic, or areas in South America and Africa where either the pandemic did not affect the countries very much, or the pandemic has passed, and investments are being prepared here.
Huawei he announced to his investors that he is going to have problems because of this global situation, so that now the Coronavirus affects not only the sales of phones, but also those of 5G equipment, at least in Europe.
