Huawei could lose as much as US$30 billion in revenue over the next two years as a result of the US blacklisting, chief executive and founder Ren Zhengfei said Monday (17 June).
“We never thought that the US’ determination to attack Huawei would be so strong, so firm,” he said during a panel discussion at the company’s headquarters in Shenzhen, comparing the company to a “badly damaged plane”.
He added that despite preparations, "we have been unable to protect some of the secondary parts" of the company.
Huawei expects revenues of about $100 billion annually for the next two years, compared to $105 billion in 2018, he said.
This is downgraded from the $125 billion revenue he said the company was targeting in February.
Furthermore, Ren acknowledged that overseas smartphone sales will drop by 40%, confirming a Bloomberg report published Sunday.
However, the Chinese market is growing rapidly, and Huawei is expected to return to its previous trajectory by 2021, he added.
“In 2021, we will regain our vitality and (continue to) provide services to human society,” he said.
Until this year Huawei had a flawless decade of growth, breaking the $100 billion revenue mark for the first time in 2018.
The Chinese smartphone manufacturer is at the centre of an ongoing trade dispute between China and the US.
Last month, the US placed Huawei on its “Entity List,” which effectively bars American companies from selling components to Huawei without government approval.
In response, Ren said Huawei would continue to develop its own components to reduce its dependence on outside suppliers.
With most of the decline in international sales, the company will now be focusing its efforts on making its home market outperform in smartphone sales.