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Huawei Expecting 40-60% Smartphone Shipment Sales drop, globally, due to the ban: Report

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Huawei had been making successful smartphones over the past couple of years and has been gradually making its position to the top in the highly competitive smartphone business and was almost set to take over Samsung when it comes to the smartphone share. In the recent past, Huawei along with its sub-brand Honor has been making a wide range of smartphones catered to different price brackets wherein the Huawei phones were meant for ultra-premium section phones and relied on Honor for its budget/mid-range phone segments in the country.

And, now it is believed that these sales are said to be sheer dropping — thanks to the ban imposed by the US last month. Ever since the ban being imposed on the company several prominent tech giants like Google, Qualcomm, ARM, and Intel have been cutting ties with the company and have also suspended their services, which involved Huawei and its smartphones. Now, a new report from Bloomberg reveals this ban imposed will likely cost the company a fortune when it comes to its international smartphone shipments

The report cites sources from the company familiar with the matter indicate the sales drop of Huawei globally is said to go down by 40-60 percent that translates to the overall sales drop of approximately 40 to 60 million devices this year. While the company had hit a record of 200 million smartphones shipped in 2018, this year seems to be a setback for the company due to the ban imposed. This comes after the recent reports of the shipments sales drop in Germany, post the ban.

The company had recently launched its sub-brand Honor 20 series last month. The report suggests the ban would affect these new series devices in Europe market as well, wherein the devices are set to go on sale on 21st of this month. The report further indicates Huawei would cut down the shipments if the ban affects the sales of Huawei 20 series in Europe. Further, the popular network carriers in France are said to have dropped Honor’s 20 series sale altogether.

Huawei founder, Ren Zhengei had confirmed that the company had seen a 40 percent drop in smartphone shipments globally further expecting to lose $30 Billion of its overall revenue in the upcoming two years in the business, suggests the report. Also, Ren hadn’t expected the damage to be this severe post the ban was implemented by the US. For those unaware, the ban on Huawei was imposed by the US claiming that the company might be a possible threat to the US national security, which led to Huawei being stopped getting its hardware and software from the US.

On the whole, we can see the impact of ban from the US on the Chinese tech giant Huawei being very substantial and affecting the smartphone shipment sales of the company, globally. The ban effect by the US are causing several other issues, for instance, Google canceling the Android license, which is now making Huawei develop its own operating system(Sailfish-based Aurora OS) for its smartphones and ARM cutting ties in chipset making with Huawei and now the sales drop is making the company run out of choices, regardless. Stay tuned to PhoneRadar for more such interesting updates.

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