Ren Zhengfei, Huawei’s CEO and founder, claims that he anticipates US sanctions to cause the firm’s income to decline by billions of dollars, media claims. The firm anticipates its income to decline to $100 Billion in 2019, down from almost $104 Billion in 2018. Earlier the firm claimed that it anticipated making $125 Billion in income. “We did not hope that the Trump management might assault us on so many aspects,” Ren claimed, even though he claimed that the firm did not hope to conduct large-scale layoffs or slash R&D spending.
The CEO had originally been defiant in the face of executive order by Trump, and claimed that Huawei had emergency plans to cope with the prohibition. On the other hand, the complete implications of the prohibition have since turned out to be clearer. Google has banned the Android license of the firm, ARM will no longer trade it designs for its processors, and various nations are shifting to ban the employment of networking equipment by Huawei.
Even its employment of Wi-Fi tech and SD cards has been complicated, although not prohibited outright. Ren verified that these problems can lead to a drop in global handset shipments of 40%, after media claimed that the firm was getting ready for a decline of almost 60%. The firm may not recover till 2021, the CEO stated.
On a related note, as per a media report, Google officials are worried that prohibiting Huawei can result in elevated security hazards. Sources warn that if Huawei is not permitted access to Android upgrades, it can design its similar, own software, which might be more vulnerable to being compromised. Google is supposedly asking the Trump management to postpone the ban or let off the firm on the whole. This was also confirmed by media insiders.