(Reuters) – Huawei Technologies Co Ltd is preparing for a 40% to 60% drop in international smartphone shipments, Bloomberg said Sunday.
FILE PHOTO: The new Huawei Honor 20 smartphone at a product launch event in London, May 21, 2019. REUTERS / Peter Nicholls / File Photo
The Chinese tech company is studying various options, including the draw of the latest model of its renowned overseas smartphone, the Honor 20, according to the article that quotes people close to the record.
The device will begin to be sold in parts of Europe, including Britain and France, on June 21, the report said. Leaders will monitor the launch and could cut shipments if sales are poor, he added.
The tech and marketing executives expect a drop of 40 million to 60 million smartphones this year, according to the report.
To offset the decline abroad, Huawei aims to capture half of the Chinese smartphone market in 2019, said Bloomberg. The company has not responded to a request for comment from Reuters.
In May, the US government ranked Huawei, the world's largest telecommunications equipment company, on a blacklist of trade, banning US suppliers from dealing with it because of Washington's national security concerns.
Huawei's founder and CEO, Ren Zhengfei, said at the time that the restrictions "could slow down, but slightly" the growth of the company.
A similar ban on the US company ZTE Corp China, a company almost paralyzed for the rival of Huawei at the beginning of last year, before the lifting of the closure.
The problems of society fuel trade tensions between Washington and Beijing. President Donald Trump said the US's complaints against Huawei could be resolved under any trade deal.
The ban was slightly relaxed to allow a temporary general license allowing Huawei to buy US products.
However, Broadcom shocked the global chip industry last week by predicting that US-China trade tensions and Huawei's ban would cut the figure by $ 2 billion. this year's business.
Report of Kanishka Singh in Bengaluru; Edited by Sonya Hepinstall