SHANGHAI – China's tech giant Huawei said on Monday that it expects the company's annual revenue to fall to about $ 100 billion as the crackdown by the Trump administration on the company is growing.
Huawei achieved sales of more than $ 105 billion last year, thanks to the rapid growth of its smartphone business. The company's chief executive, Ren Zhengfei, said in January that he expects another record year in 2019, with sales up $ 125 billion.
But that was before the US separated the company from chips, software, and other US components in its handsets and telecom equipment, claiming that the company posed a threat to the company. national security. US officials have long claimed that Huawei's products could be used by Beijing to disrupt or sabotage digital communications, accusations that the company vehemently rejects.
Washington has pleaded its case against the Chinese giant to a large number of its allies abroad, leading governments around the world to reconsider whether the company should be allowed to build a next generation 5G telecommunication infrastructure.
Huawei's executives said the company had stored computer chips and electronic components in the hope that it might one day be unable to buy them from US vendors. The company also announced the development of its own operating system to replace Google's Android in its handsets. But it remains to be seen whether European consumers, for example – where Huawei has become a giant smartphone salesman – will want to use devices that use unknown and potentially less tested software.