Huawei Technologies founder Ren Zhengfei expects US sanctions to cut the company’s revenue by about $30 billion over the next two years and affect its leading status ahead of rivals such as Ericsson AB and Nokia Oyj, reported Caixin.
China’s largest telecom company’s sales are likely to remain at about $100 billion in 2019 and 2020, Ren said during a panel discussion, quantifying the hit from a plethora of Trump administration restrictions for the first time. Huawei, however, will aim to maintain its R&D budget and refrain from layoffs or major asset sales. The sale of a majority slice in Huawei Marine, announced in June, was unrelated to American sanctions, said the CEO.
Huawei is said to be preparing for a drop of as much as 60% in overseas smartphone shipments as a result of being cut off from both US hardware and software.