Despite asserting that Huawei could lose $ 30 billion this year and next year, CEO Ren Cheng Fei announced that the lost revenue was not to be compared with Huawei's expected revenue in 2019. this.
In a recent interview with the channel CNBC, the owner of Huawei Nham Chinh Phi has shared the difficulties that the company is facing due to the US ban.
This week, Huawei made a forecast that its revenue would drop by about $ 30 billion in 2019 and 2020. However, Nham lowered the impact of the figure and said it was not a problem. afraid.
Sharing with CNBC correspondent Deirdre Bosa, Mr. Nham said that the $ 30 billion revenue was cut down, not worrying because Huawei is expected to earn $ 100 billion in revenue this year. This figure is close to the revenue of 2018.
He also said that Huawei's business situation in China is still very stable and the problem that it is facing only occurs in foreign markets.
Nham Chinh Phi said: "I don't pay attention to that because in the Chinese market, our consumer business has never declined. Everything is only a little disadvantage in the overseas market. The worst, the damage can be up to 40% but currently the number is not less than 20 %.I noticed, the decline of the consumer business segment will only be about 10% and therefore does not cause effects too big. "
However, he did not give clear explanations about how Huawei compensated for the decline in overseas sales in the next 2 years.
Mr. Nham only said in general: "We are making internal adjustments and initial estimates can slow down the machine. However, until the latest report is received, I do not see any signs of delay. And we don't know what the growth situation at the end of the year will be. But we believe that $ 30 billion is a very small number. "
Last year, Huawei achieved revenue of $ 104.1 billion and increased 19.5% compared to 2017. Even so, this figure will have strong fluctuations and fall to $ 100 billion this year and next year.
According to a different share Bloomberg, Huawei expects its global smartphone sales to fall by 40-60% in 2019. To compensate for declining sales and sales in overseas markets, Huawei is aiming to capture half of the market share in Chinese domestic market this year. The company also aims to revive more strongly in 2021.
Both the US and China will suffer the consequences
When asked about whether Huawei could buy parts from US companies, CEO Ren said that they could still buy components from US companies on condition that the US government would accept, otherwise they will have to find another solution. He also confirmed that the US government's unilateral prohibition against Huawei could affect both countries, including Google's loss of profits.
When asked about whether he dared to contact President Trump to discuss the solution, Mr. Nham confirmed to be willing to talk with Mr. Trump if conditions permit. In the case of US sanctions, Huawei will expand to markets such as Europe because according to Nham, it still welcomes the company whether other countries prohibit Huawei.
In one of the most recent developments, the head of the White House budget management agency recently asked the US Congress to extend the time to postpone the ban with Huawei. At the same time, many US chip companies such as Qualcomm and Intel are quietly lobbying to reduce sanctions against Huawei.
In May this year, the US government issued executive ordinances that prohibit these companies from trading and cooperating with Huawei. The ban greatly affected Huawei because many US companies, including Google, stopped licensing Android to Huawei, an important condition for Huawei smartphones to attract consumers in foreign markets. Or other hardware companies like Intel, Qualcomm, etc. also stopped selling chips to Huawei.