Back in early 2019, Huawei had been hit with a ban from the US, that placed the company in the “Entity List.” Since then, the company’s operations have been severely hampered while it has also lost support from Google, due to the blacklist. While the company did launch its own alternatives, it seems the transition wasn’t as simple as they wished, with the company reportedly losing out on billions of dollars.
According to Eric Xu, the Deputy Chairman and Rotating Chairman of Huawei, the company has lost out on nearly 12 billion US Dollars in 2019. Apparently, Huawei’s previous projections regarding the year had an estimated 135 billion US Dollars. However, the company has fallen just short of the amount, which was directly related to the various “US sanctions” that were against the Chinese tech giant.
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A major chunk of the shortfall arrived from Huawei’s consumer division that accounts for over 54 percent of the company’s total sales in 2019. Xu stated that “it is the consumer business of Huawei that was hurt the most.” In other words, smartphones, tablets, laptops and more were affected by the US blacklisting. Reportedly, these consumer grade electronics products brought in 66.93 billion US Dollars in revenue in 2019, which was about 10 billion US Dollars less than what the company was originally targetting.
For those unaware, after the US ban, Huawei could not trade or buy products/services from US based companies. This caused it to lose Google’s mobile services, which in turn meant that Huawei smartphones now had to ship with vanilla Android. Thus, this caused the development of the HMS (Huawei Mobile Services), but unfortunately, the platform is still in its nascent stages. Huawei’s partnership with Google also meant that both companies profited greatly from one another, but that has since been terminated.
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