According to a report, the Chinese tech giant is preparing for a huge 40-60% decline in its international shipments after the ban by the US.
Bloomberg, the famous financial data and media company from the US, has reported that Huawei is readying itself for a fall in the international shipments of its smartphones ranging anywhere in 40-60%. A recent report from Forbes claimed that the company had confirmed a revenue decline of $30 Billion owing to the decline in shipments.
The sales and marketing teams at the company are expecting the fall in smartphone sales to be in the range of 40 million to 60 million units. Earlier this month, the company had expected the decline to be about 20-30% in the second half of the year. The statistics reported in more recent reports show a decline compared to the company’s initial expectations.
In order to compensate for this decline, the smartphone company was exploring alternate plans like increasing its market share to more than half in China.
The decline comes in connection with the US trade ban on Huawei. Earlier this year, the US government put the Chinese tech company in a trade blacklist making it difficult for the US companies to do business with the company. As a result, the US companies started pulling off their ties with Huawei. Firstly, Google removed access of Android from Huawei. Then, Intel and Qualcomm also pulled away.
In order to suffice the need of an operating system, Huawei started working on an operating system of its own. The operating system, which goes by the name of HongMeng, is reportedly said to offer 60% better performance than Android.
