With U.S. export blacklisting along with other actions against Huawei Technologies Co., Founder Ren Zhengfei expects revenue to be roughly $100 billion this year — down from last year’s approximately $107 billion. Zhengfei had previously targeted $125 billion for revenue this year, The Wall Street Journal reported.
The company is facing an entity listing from the Commerce Department, which impairs the ability of suppliers to sell it U.S. technology. It procured American technology with a value of $11 billion in 2018 compared to a budget for total procurement of $70 billion. However, the company reportedly has plans to procure supplies from sources that aren’t in the U.S. alone and is said to have stockpiled part inventories.
Even so, analysts noted that some U.S. company-designed chips that are high-end will be hard to find in another place. And the outlet reported that the blacklisting stops the company for licensing the Android operating system of Google for models of phones in the future — and that reportedly impacts the progress in made in international markets for handset sales.
In other recent Huawei news, reports recently surfaced that the Chinese tech firm will not roll out a new laptop due to restrictions put on the purchase of American parts by the U.S. government. It was previously reported that the news was first real consequence to Huawei since the restrictions were put in place. The U.S. Commerce Department banned American companies from selling to Huawei due to concerns of espionage and spying, which Huawei denies.
While Huawei is the second-ranked brand of smartphones in the world, its computer business is fairly new. It manufactures three laptop computers that use Intel chips and Microsoft Windows. According to past reports, the head of Huawei’s consumer business noted that the laptop may never come out if the firm stays on the blacklist. The ban is reportedly mainly centered around the telecommunications business of the company along with its cellular-tower hardware. Washington has also reportedly asked other countries to ban Huawei.