Huawei will cut production by $30bn as international sales slide
By Duncan Ferris
Date: Monday 17 Jun 2019
(Sharecast News) - The founder of Huawei said the company will slash its production by $30bn over the next two years as a result of the restrictions placed by the US on the Chinese telecoms giant.
Speaking at Huawei's headquarters on Monday, Ren Zhengfei said sales were expected to come in at $100bn for 2019 and 2020, down from $105bn in 2018 and significantly below the $125bn that the founder and chief executive had been targeting as recently as February.
International sales were expected to slide by 40% but Ren remained confident that the company would "regain vitality" in 2021 as the Chinese market continued to grow rapidly.
Fears that the company's technology could be used by the Chinese government for espionage prompted a US-led backlash.
US businesses now require a licence to be able to trade with Huawei, while nations such as the Australia, Japan and Taiwan have banned the company from supplying equipment for their next-generation 5G networks.
And Google halted the release of some updates for its Android operating system on Huawei handsets, leaving some of the company's phones without access to certain Google apps.
Ren reiterated that US claims against Huawei's technology were baseless, adding that the company's current difficulties are "not caused by American businesses, but rather by certain politicians' different perspectives."
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN