Huawei expects $ 20 billion loss in revenue

The US blockade of Huawei has been having consequences for weeks, such as the drop in sales. Although the consequences for the future are gradually becoming known. It can mean a huge drop in the firm's income, something that the CEO already confirms. Because it is estimated that they could suffer a loss in income of $ 20 billion.

Huawei expects $ 20 billion loss in revenue

Sales will fall, which means that the company will also produce fewer phones in this regard. The company acknowledges having underestimated the blockade.

Consequences of the blockade

It is estimated that they could lose around 40% of the units sold worldwide. This would mean that Huawei would sell between 40 and 60 million fewer phones. So it is a significant loss, especially in the international market, where the company has had significant growth in the past two years. A drop in sales that of course has an effect on your income.

In this case, worldwide turnover would remain at $ 105 billion. A drop of about 20, 000 million dollars, compared to the initial expectations of the company. Although the question is whether they will even get this figure, seeing the current situation.

From what we see, Huawei has partially underestimated this blockade, which they now see as it seriously affects them. Next weekend is the G20, where there is a meeting between China and the United States planned, where the issue of the blockade is expected to be mentioned. We will see if there is any solution soon for the signature.

Reuters Source