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Home News Business Huawei Suffers $30 Billion Lost Following US Ban, But Vows To Rebound

Huawei Suffers $30 Billion Lost Following US Ban, But Vows To Rebound

Huawei Suffers $30 Billion Lost Following US Ban, But Vows To Rebound - Surge Zirc SA
Huawei chief Ren Zhengfei/ Photo file: Screengrab

Huawei is currently facing a hard-time in business following the US ban on its 5G network products. The tech company chief Ren Zhengfei said earlier today that the company has lost $30 billion when he was discussing the hit his company will have to deal with in the next two years.

It’s also possible to have the above figure to keep increasing since the company is hounded out of both the network and smartphone businesses. Ren Zhengfei made the statement at an event that was organized by Huawei, with the caption “A Coffee with Ren,”

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The event with Ren featured MIT Media Lab co-founder Nicholas Negropronte, who said during the event that the current attack on Huawei will be harmful to the open flow of information. Zhengfei also invited controversial right-wing investor George Gilder who during his speech also condemned the action America took again Huawei.

Huawei’s smartphone is most likely to go through bigger shock as a result of the US sanction, which has prompted the withdrawal of major partners from Western companies. Bloomberg reports company insiders who say that Huawei’s phone business will shrink between 40 million and 60 million devices. The company’s Honor sub-brand, marketing lower-end devices, will be largely affected.

The statement says two unnamed French carriers have also pulled out of carrying the Honor 20, due to launch this Friday. Huawei insiders are thinking that if the Honor 20 bombs, the company will pull the phone, or severely limit shipments. The company is also not sure of Google’s support in the future.

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Huawei is the world’s second largest phone manufacturer, after Samsung, and has grown in the double digits for several years, even looking forward to overtake Samsung.

Right at the event, Zhengfei said his company would rebound in the next few years, immediately it completes a “switchover of products.” That was all he said in respect to that. But that could only mean that Huawei will develop its own technologies like OS, so it will no longer rely on anyone to move on.

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