Huawei Expects Smartphone Revenues To Fall $10 Bln

Huawei expects its revenue from smartphones to fall by $ 10 billion this year due to US trade constraints.

Although the Chinese giant announced on Friday that the US trade restrictions have affected its business less than it feared, it did not deny possible losses from the trade war.

Huawei's vice president Eric Shaw said in a press conference, introducing new chips in the field of artificial intelligence, that there is likely to be a decline in sales of about $10 billion.

In 2018, Huawei's consumer business, which combines the smartphone unit, generated revenue of 349 billion yuan.

Moreover, Huawei phones' sales expanded revenue in China, hitting an all-time high after selling 118 million smartphones in the first half of 2019.

This week, the United States decided to extend the grace period for Huawei, by an additional three months, under which it would be able to buy US spare parts.

Nonetheless, the Huawei official stressed that extending the grace period does not make sense as employees are fully prepared to work under imposed sanctions.

Huawei relies massively on computer chips from US companies like Intel, Micron, and Google, which supplied the company with its Android system.

Last May, Google said that it would restrict Huawei’s access to the Android operating system, which was a crushing setback to Huawei’s smartphone industry.