Huawei Sees Colossal Decline In Smartphone Revenue

  • China's Huawei Technologies Chairman Eric Xu sees a revenue decline from its smartphone business by at least $30 billion - 40 billion in 2021, with new growth streams unlikely to make up the shortfall in the next few years, Reuters reports.
  • Donald Trump's 2019 embargo continues to weigh on the Apple Inc AAPL competitor's handset business despite its new 5G-related business. Huawei now aims to explore beyond the chipset supply chain.
  • Related Content: Smartphone Showdown In Q2 Produced A New No. 2 After Samsung, And It's Not Apple
  • Huawei expects to survive for the next five to ten years while the supply chain challenges will likely take a long time to resolve. Smartphones contributed $50 billion in 2020 revenue.
  • Huawei reported its most significant ever revenue drop in the first half of 2021, generating 320.4 billion yuan ($49.57 billion).
  • The Biden government is in no mood to relax its restrictions on Huawei and aims to take further steps against the company if required.
  • Meanwhile, U.S. prosecutors have agreed to resolve fraud charges against Huawei CFO Meng Wanzhou, Reuters reports.
  • Price Action: AAPL shares traded lower by 0.04% at $146.78 on the last check Friday.
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