Huawei hot news that cancels the launch of a laptop and slows down its folding smartphone now begins to see the hard figures how much the export ban on the Trump Administration could affect the Chinese company's business. A Bloomberg report says it describes Huawei's internal ratings, saying the company expects a 40 to 60% drop in international smartphone shipments due to an export ban. Huawei makes about half of its smartphone business internationally, and with 206 million sold handsets altogether in 201
The Bloomberg report also says Huawei pulls its next smartphone, the 20th if the sales are not to death. The phone starts on June 21 in some parts of Europe, but the report says "managers are watching the launch and can stop shipping if they sell badly as expected." Carriers also need to be addressed in this equation, and the report notes that two of the largest carriers in France have already renounced the sale of the device. the launch of Honor 20 is still on schedule for June 21, and Honor 20 Pro will be available on the overseas market "soon".
40-60% decline in shipments of smartphones seems almost optimistic. It's hard to imagine an informed consumer outside of China who would take a Huawei phone with so much uncertainty around the brand. Once the 90-day support window expires, it's unclear whether customers will have access to security updates and future Android updates or if the Google Play Store and Google apps will continue to work. Huawei must first of all hope that uninformed consumers will take their smartphones without being aware of all the shocks the company experiences
After-sales prices are already reserved for Huawei phones, and some stores refuse to accept Huawei devices . This drop in value should also affect the new Huawei phones; if Huawei is able to sell some devices, it can be a big discount.
Even if Huawei is able to move some units, the company can not buy new components from US suppliers or international suppliers using US technology. According to Bloomberg's report last month, Huawei has built a three-month stock of components before the ban for export so that everything that the company sells now flows into this stock. Ultimately, the treasures of the Huawei components will dry out and then the shortage will begin.