Huawei Might Lose Out On $30 Billion Revenue After US Ban

Huawei has been going through a rough patch after the US government banned its operations in the country, citing privacy concerns. Now Huawei CEO Ren Zhengfei has revealed new information about the company's revenue after the ban, reports Bloomberg.

"Our revenue will be down by about $30 billion compared to forecasts. So our sales revenue this year and next will be about $100 billion," Ren said. "We didn't expect the U.S. would so resolutely attack Huawei. We didn't expect the U.S. would hit our supply chain in such a wide way - not only blocking the component supplies but also our participation in international organizations," he added.

Ren also revealed that the company's smartphone sales witnessed a 40 percent decline after the trade ban. According to the report, internal estimates point towards a drop between 40 million to 60 million units.

The CEO also said the company was hoping to maintain its R&D budget, and avoid selling major assets or layoffs. To steer clear of layoffs, the company would assign employees in non-core businesses to core businesses.

After the ban, Huawei is working on a lot of in-house technologies to keep the business running. The company is roping in Play Store developers to bring their apps to the company's AppGallery, reports XDA-Developers.

To promote the new venture, Huawei is touting to have shipped over 350 million devices over the last year and all have direct access to AppGallery. Moreover, Huawei is also inviting the developers to join the company's community without any charges.

Besides, the company has assured its consumers that major apps like Facebook, WhatsApp, Instagram, and Messenger will continue to work on its devices, reports Android Authority. On May 21, the Trump Administration granted Huawei and its partners a temporary license for 90 days.

"We are reviewing the Commerce Department's final rule and the more recently issued temporary general license and [are] taking steps to ensure compliance," said Facebook in a statement. This doesn't affect the phones already in the market.