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A month after being placed on a blacklist of trade by the Trump administration, Huawei would have stabilized so that international shipments of its smartphones fall from 40% to 60%. According to a report to Bloomberg, Huawei could end up sending shipments of Honor 20, its flagship phone destined for overseas markets, if sales are mediocre.
In May, the US Department of Commerce banned Huawei from buying parts from US companies without Washington's prior approval, saying Huawei posed a potential threat to national security. After the ban, Huawei's founder and CEO Ren Zhengfei said the blacklist could slow the company's growth, but "only slightly".
But Bloomberg has announced that the company is now preparing for the fall of its international deliveries. Huawei's director of sales and marketing internally forecast a drop in transport volumes of between 40 and 60 million smartphones. The Honor 20 will go on sale in parts of Europe, including France and the UK, on June 21, but Huawei may suspend deliveries if it sells poorly.
In order to offset the expected drop in international shipments, Huawei wants to capture half of China's smartphone market this year. According to Canalys, Huawei was the only company among the top five smartphones suppliers in China to grow, with the rest of the market shrinking by 34 percent to 34 percent market share. both are updating their product strategies to cover more consumer segments. Bloomberg said Huawei wants to increase shipments by investing more in marketing and expanding its distribution channels, but some executives have said its target is too high.
In the US, the blacklist also affects some of Huawei's largest chip vendors, including Qualcomm, Intel, and Xilinx. Reuters reports that representatives of some companies have met with the Commerce Department to lift restrictions on parts for common devices that do not pose safety issues, such as smartphone chips.
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