Huawei has been involved in quite a bit of trouble over the past few weeks, ever since the United States government added the company to its Entity List, forbidding from buying products and services from American companies. Since it was initially banned, we've seen Huawei double down on its own app store, preparing to launch its own operating system, and reportedly getting ready to scale back launches of smartphones and laptops alike.
Now, though, the firm's founder and CEO, Ren Zhengfei, has talked about the expected financial impact of the measures taken by the U.S. government for the first time. As reported by Bloomberg, Zhengfei mentioned during a panel discussion that its revenue will take a $30 billion hit over the next two years, hovering around the $100 billion mark.
Sales are expected to be stagnant in 2019 and 2020, though the company hopes to avoid lay-offs and maintain its investment in research and development. The firm also doesn't plan to sell any major assets as a result of the restrictions.
During the discussion, Zhengfei confessed that it didn't expect to be attacked so relentlessly by the U.S. government, which has blocked its supply chain dramatically and prevented the company from participating in international organizations. The CEO didn't expect that the damage would be so serious, and that it went beyond what the company had prepared for.
While things aren't looking too bright for the company for the next two years, Huawei has no intention of going the way of ZTE in the face of U.S. restrictions. "We will be reborn by 2021", the CEO said. With plans to launch its own OS and app store, the firm seems to have a course of action set to circumvent the challenges imposed by the United States administration.