Huawei sees ‘difficult year’ ahead amid US trade ban
"Despite concerted efforts by the US government to keep us down, we've made it out the other side and continue to create value for our customers," said Huawei rotating chairman Eric Xu in a New Year's message to employees.
"These figures are lower than our initial, yet business remains solid and we stand strong in the face of adversity."
The U.S. has repeatedly made statements throughout the year that the company is a threat to national security not only for the country, but also for the world. That is why Huawei was deprived of the right to do business with American companies. Thus, the company has been deprived of the necessary hardware and software to create its telecommunication facilities. In addition, it will not be able to have access to all Google services in the Android mobile operating system.
Against the backdrop of the ban, the company lowered its revenue forecasts in June, initially they were US $125 billion, but now they reach only US $100 billion. Such measures have been taken due to the expected decline in demand for smartphones in foreign markets, which will require reducing production.
Despite this, in 2019 Huawei shipped a total of 240 million devices, which is 40 million more than last year. The share of sales has not decreased both in the domestic market and abroad.
However, the year 2020 is expected to be more difficult as the company does not hope to leave the U.S. entity list.
"We won't grow as fast as we did in the first half of 2019, growth that continued throughout the year due to herer in the market," said Xu, noting that "survival" will be the company's first priority.
From the positive news, Huawei confirmed on Tuesday that she received permission from India to test 5G networks in the country. With active attempts by the US to turn its allies against the company, this news has become a necessary push for Huawei to continue its development.
"We thank the Indian government for their continued faith in Huawei. We firmly believe that only technological innovations and high-quality networks will be the key to rejuvenating the Indian telecoms industry," said Jay Chen, CEO of Huawei India.
As part of the loss of access to Google services for its devices, Huawei is focusing on creating its own Huawei Mobile Services (HMS), which will enable developers to create their own applications for their devices. The new system will replace Google Play Services in its future and will give international users access to all applications.
"The foundation for Huawei Mobile Services (HMS) is the foundation of our ability to sell smart devices in markets outside China," said Xu.
"In 2020, we need to go all out to build the HMS, ensure that we can keep selling our smartphones in overseas markets, and support the innovation of our application partners".
The report also mentions that to support its competitiveness, the company will be subject to reform.
"The US government's campaign against Huawei is strategic and long-term. It's a great opportunity for us to motivate ourselves and build up some muscle," he said. "Fortune favors the bold."