CEO Ren Zhengfei said Monday that the Chinese phone maker's troubles with the US could take a huge toll on the company in the coming months. Speaking from the company's headquarters in Shenzhen, Zhengfei said he expects up to $30 billion could be wiped off Huawei's revenue expectations for 2019.
Zhengfei's statement is a marked departure from previous statements made by company executives, which suggested that Huawei could remain self-sufficient in spite of being blacklisted by the US.
Action taken against the company by the US, including a ban on selling Huawei phones, , as other countries begin to question the integrity of Huawei's telecommunications equipment. Huawei has consistently defended itself against criticisms that its phones and other products are a security risk and insisted it doesn't have strong, far-reaching links with the Chinese government.
Initially the company was expecting to post revenues of $125 billion to $130 billion this year (up from $104 billion in 2018), but has now reduced its estimates for this year to just $100 billion. "We did not expect they would attack us on so many aspects," said Zhengfei, adding that he expects things to improve by 2021.