A month after the Trump administration, Huawei is reportedly steadying itself for international shipments of its smartphones to drop by 40% to 60%. According to a report in Bloomberg, Huawei may end up pulling shipments of Honor 20, its flagship phone for overseas markets, if sales are poor
Department of Commerce barred Huawei in May from purchasing parts from U.S. companies without prior approval from Washington, claiming that Huawei is a possible threat to national security. After the ban, Huawei founder and CEO Ren Zhengfei said the blacklist may slow company growth, but "only slightly."
But Bloomberg reports that the company is now oiling for international shipments to plummet, with sales and marketing manager Huawei internal forecasting and drop in shipment volumes between 40 million to 60 million smartphones. The Honor 20 will go on sale in parts of Europe, including France and the UK, on June 21
In order to offset the expected decline in international shipments, Huawei wants to grab half of China's smartphone market this year. According to Canalys, Huawei was the only company among China's top five smartphone vendors to report growth as the rest of the market declined last year, achieving a 34% market share, but still needs to ward off competition from Oppo and Vivo, which are both refreshing their product strategies in order to cover more consumer segments. Bloomberg reports that Huawei wants to increase shipments by spending more on marketing and expanding its distribution channels, but some executives have said their target is too high
Meanwhile in the US, trade blacklist is also impacting some of Huawei's most important chip including Qualcomm, Intel and Xilinx. Reuters reports that representatives of some companies have met with the Commerce Department to lift restrictions on parts for common devices that say they do not present security concerns like smartphone chips