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.
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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.