Monday, June 17, 2019

Huawei said that the US ban will result in a loss of $30 billion in revenue

Huawei said that the US ban will result in a loss of $30 billion in revenue



According to a series of US trade restrictions The Chinese manufacturer of telecommunications equipment and smartphones Huawei expects its revenues to be $ 30 billion lower than expected in the next two years. The founder and CEO Ren Zhengfei was at a round table at the company's headquarters in Shenzhen on Monday. He said

According to the executive, Huawei's production will slow down in the next two years, and revenues this year and next year will be around $ 100 billion. He said that the company's overseas smartphone shipments will fall 40%, which confirms the previous Bloomberg report.

In other words, Ren guarantees that after a period of adjustment, Huawei's production will "rejuvenate" in 2021.

The challenges of Huawei are multifaceted because the "list of entities" of EE. UU Prohibits the purchase of certain Android services from the US chip manufacturers UU And other restrictions. In response, the Chinese giant recently announced that it has been preparing its own backup chip and smartphone replacement operating system for many years.

"We did not expect the United States to attack Huawei with such strong and determined efforts, not only are we prohibited from providing specific components, but we have also joined many international organizations, working with many universities, using any component of the United States and even connecting us. "to the network that uses American parts," Ren said in the group.

The founder said that these unfavorable circumstances exceeded his expectations, but he did not prevent the company from making great advances. "We are like a damaged plane, we only protect its heart and its fuel tank instead of its appendages, Huawei will prove it through the period and the adjustment time, we will take this step and we will be stronger".

The image of the incessant aircraft in difficult times is to adhere to the minds of employees through the small power slogans distributed on the Huawei campus. TechCrunch is a small group of reporters who chatted with Huawei employees about the current situation in the US. UU And China. Many of them expressed Ren's optimistic and flexible attitude.

"I have a lot of confidence in the current situation," said an employee who had worked at Huawei for five years and could not be named because he was not authorized to speak with the media. "My confidence is derived from the way our boss understands and predicts the future."

More cooperation
Ren, 74, has maintained a calm attitude since he founded Huawei, but recently appeared in the media because his company has been increasingly examined by the West. This includes the group's efforts on Monday, known as "Café con Ren," and is known as Ren's first chat to the side.

Along with American technology writer and spokesman George Gilder and MIT Media Lab co-founder Nicholas Negroponte, he believes in a more open and collaborative economy. This can bring greater common interests among nations.

"The West is the first person to devise the concept of economic globalization, this is the right decision, but there will be great waves in this process and we must treat them with correct measures, rather than radical ones."

Gilde believes that "this is what the United States will lift any effort." "I think we have excellent business energy, exceptional creativity and exceptional technology, but cooperation with other countries has always flourished."

"The United States is making a terrible mistake when choosing a company," said Negroponte. "I come from a world that is not interested in trade, business or actions, we value knowledge and want to build on the people we have in front of us, the only way to do it is to be open from the beginning ... in science. early stages, this is not a competitive world. [World] benefits from cooperation. "

"This is an era of games where everyone wins," said an anonymous employee, TechCrunch. He cited the example of network operator China Mobile, which recently announced that it not only bought Huawei, but also bought non-Chinese suppliers Nokia and Ericsson, after the company obtained the first commercial license to deploy 5G networks in the country. .

"I think the most important thing is that we focus on our work," said Ocean Sun, whose mission is to integrate network services for Huawei's customers. He believes that, as employees, his work is "professional, providing clients with the best solution".

"I think the trade war between China and the United States hurts both," suggested Zheng Xining, a Huawei network service engineer in Huawei. "Donald Trump should think twice before [about his decision]."

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