Intel and Qualcomm are lobbying against Huawei ban fearing losses of $11bn

Ruben Fields
June 17, 2019

China's Huawei Technologies Co Ltd expects sales to drop to around $100 billion this year and the next, CEO Ren Zhengfei said on Monday, as its business comes under pressure due to US sanctions.

Initially it talks about Huawei expecting a 40 to 60 percent drop, and later on it says "the tech giant are internally expecting a drop in volumes of anywhere between 40 million to 60 million smartphones this year".

"In the coming two years, the company will cut production by $30 billion", Ren Zhengfei said during a panel discussion at corporate headquarters in Shenzhen. American chip makers who supply the Chinese firm with their technologies will also take a financial hit and are lobbying the U.S. government to ease the ban.

In December, Huawei chief financial officer Meng Wanzhou - Ren's daughter - was arrested in Vancouver at the request of US authorities.

"There is no way we can be beaten to death", Ren said.

Bloomberg reported on Sunday that Huawei was preparing for a 40-60% drop in worldwide smartphone shipments.

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The official Redmi India Twitter account has come up with a teaser suggesting the launch of the Redmi K20 Pro in India. Powering the device is a Snapdragon 855 SoC which is paired with up to 8 GB of RAM and 256 GB of storage.

United States officials have accused Chinese technology companies such as Huawei of stealing trade secrets and threatening cybersecurity - possibly at the behest of the ruling Communist Party.

Huawei was the world's number two smartphone producer previous year, ahead of Apple and behind South Korea's Samsung, as well as the largest provider of telecom networking equipment.

Huawei is under fire from companies, governments, and agencies around the world for being a potential threat to security.

"Our president has already said publicly that he would reconsider Huawei if we can make a trade deal". He said it never occurred to Huawei that the American government would be so determined to take such a wide range of what he called extreme measures against the company.

"It's OK that certain universities don't work with us right now because there are so many other universities out there", the Huawei founder said.

The ban has forced companies, including Alphabet Inc's Google and British chip designer ARM to limit or cease their relationships with the Chinese company. The latter includes alternatives to both Android and Windows, and while it's hard to believe either will be ready, let alone viable, anytime soon, this USA action has clearly accelerated those efforts.

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