Huawei is preparing for a massive decrease in its international phone shipments – potentially expecting up to a 40-60% drop. The expected fall in international shipments comes ahead of the Huawei Mate 30 launch – coming later this year.
2019 has been a tumultuous time for Huawei and some internal estimates are hitting its finances may be headed for a big hit. The company is preparing to ship 40 to 60 million fewer smartphones internationally.
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According to Bloomberg, Huawei is preparing for the drop in international phone shipments in light of the company’s placement on the US entity list – preventing Huawei from doing business with United States companies.
In response to the estimates, Huawei is considering pulling the sales of an upcoming phone from its sub-brand Honor. The Honor 20 is set to be released in the UK and France on June 21. The launch is being monitored by executives and shipments could be cut off if sales are poor.
However – contrary to Bloomberg’s report – an Honor spokesperson told TechRadar, Honor “is not considering pulling back the Honor 20 series in global markets” but – in fact – will be “aggressively promoting” the new phone.
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A drop in 40 to 60 million in international smartphones would be a significant hit to Huawei’s business. In 2018, the company shipped 206 million phones in total.
Founder of Huawei Ren Zhengfei confirmed the company had already experienced a 40% drop in phone shipments abroad – with a company spokesperson stating the figure only referred to a drop which occurred over the past month. Ren also stated the US sanctions could cost the company $30 billion in revenue over the next two years.
The previous development in Huawei’s US ban-related woes involved the company’s manoeuvring to release an Android alternative – in response to Google’s cutting of ties with the Chinese-owned smartphone brand.
Huawei began patenting the Hongmeng OS outside of China on May 14 – shortly after the US ban was put into place. Global patenting signals a key step for Huawei in moving towards the release of its own mobile operating system.