Huawei founder: We did not expect US to attack us on so many aspects
Huawei Technologies founder and chief executive Ren Zhengfei said the impact of a US ban on the Chinese company was more severe than expected and warned that revenue would dip to around US$100 billion (S$137 billion) this year and the next.
This is the first time Huawei has quantified the impact of the US action against the company, and Mr Ren's downbeat assessment comes after weeks of defiant comments from company executives who maintained Huawei was technologically self-sufficient.
Huawei had not expected that US determination to "crack" the company would be "so strong and so pervasive", Mr Ren saidyesterday.
The US put Huawei on a blacklist that effectively bans US companies from doing business with it, alleging Huawei's products could allow China to spy on US communications.
Huawei's international smartphone shipments will drop 40 per cent, Mr Ren said.
Huawei had reported revenue of 721.2 billion yuan (S$142 billion) last year and said a few months ago it expected revenue this year to jump to US$125 billion.
"We did not expect they would attack us on so many aspects," Mr Ren said, but added that he expects a revival in the business in 2021. He said Huawei would not cut research spending or resort to large-scale layoffs.