HUAWEI

Company expected to lose more than $10 billion in US sanction sales

US sanctions against Huawei are expected to have an impact of more than $10 billion on revenue from its cellphone division in 2019. Huawei has been banned from trading with US companies since May, when it was blacklisted. companies that could threaten the security of the United States.
The amount was published by Reuters and released by one of Huawei's rotating presidents Eric Xu at an artificial intelligence chip launch event in China. The losses are lower than initially estimated by the company: in June, founder Ren Zhengfei said revenues could fall $30 billion this year.
The company had record revenues of $105 billion in 2018, up 20 percent from 2017. For this year, if projections are maintained, Huawei will still have modest growth: before sanctions, it was forecast to hit revenue. between $120 and $ 125 billion by 2019. We will not know the truth until March 2020, when Huawei will release its financial results for the period.
While the fight is not resolved, Huawei can do business with US companies in specific cases. The Commerce Department granted a temporary license in May, which would expire on Monday (19) but was renewed for another 90 days until November 19, 2019.
The temporary license allows Huawei to maintain and support existing network equipment; update Android on phones released May 16, 2019; and get involved with agencies like ITU, 3GPP and GSMA for 5G development. For other activities, such as buying chips from Intel and installing mobile networks, Huawei has to file a formal application with the US government, which will make the analysis "presumed denial."
According to Eric Xu, the temporary license is unimportant to Huawei as the company was fully prepared to deal with the sanctions. Meanwhile, the company has confirmed that it will upgrade smartphones to Android 10, will invest $ 800 million to set up a factory in Sao Paulo and has demonstrated its first electronics with the new HarmonyOS, a smart TV.

Tecnoblog/mundophone