Huawei expects to take $30B hit from US ban

The US blacklisting is taking its toll on the world's No. 2 phone maker.

Katie Collins Senior European Correspondent
Katie a UK-based news reporter and features writer. Officially, she is CNET's European correspondent, covering tech policy and Big Tech in the EU and UK. Unofficially, she serves as CNET's Taylor Swift correspondent. You can also find her writing about tech for good, ethics and human rights, the climate crisis, robots, travel and digital culture. She was once described a "living synth" by London's Evening Standard for having a microchip injected into her hand.
Katie Collins
In this photo illustration a Huawei logo seen displayed on a

Huawei could take a big hit from its troubles with the US.

Omar Marques/SOPA Images/LightRocket via Getty Images

Huawei 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 , is having a ripple effect around the world, 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.

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