On August 23, after the launch of its new AI processors, Huawei said the revenue cut of its smartphone business now expected to be lower than initial assumption.
Back in June, Ren Zhengfei, founder and CEO of Huawei expected that the company’s US blacklisting will cost revenue by $30 billion.
However, Eric Xu, Huawei’s Rotating Chairman said the impact in revenue will be lower than what Ren has expected but we’ll have to wait for the upcoming quarter results.
“Huawei’s consumer business group is doing much better this year than initially feared but a (sales) reduction of more than $10 billion could happen,” he said. Huawei’s consumer business group reported revenue of 349 billion yuan in 2018.
Recently, the US has extended the 90 days reprieve for Huawei but also added more Huawei subsidiary to the Entity-List.
In a memo revealed previously, Ren Zhengfei, Founder of Huawei told employees to prepare for a more severe situation in the upcoming time and to give their best for the company.
Xu said the reprieve was “meaningless” to Huawei, whose employees are “fully prepared” to live and work with the ban.