Huawei could be readjusting its revenue forecast this year, and it’s all because of the US blacklist. The Chinese-based company has been fairly positive about the blacklist in the US, but now, CEO Ren Zhengfei is opening up about how much of a hit the company is going to take.
They’re going to see a considerable drop in revenue estimates for the year. Zhengfei says that this blacklist could actually have them lose out on more than $30 billion, if the blacklist goes through.
That’s an insane number, but this is affecting almost every area of Huawei’s supply chain:
“We cannot get components supply, cannot participate in many international organizations, cannot work closely with many universities, cannot use anything with U.S. components, and cannot even establish a connection with networks that use such components.”
Huawei has already seen a massive drop in shipments, Zhengfei said. Right now, they’ve already had an international drop of 40%, but could see that number increase to as much as 60%.
It’s worth noting that this doesn’t just affect the US market, but influences consumers’ buying decision all over the world. Huawei’s taking it pretty hard, and there’s no telling if a reversal would even return things to ‘normal’ at this point.
Zhengfei said this wouldn’t affect Huawei’s spending in research and development.