Huawei hammered

kapitan

Village Elder
#1
Chinese tech giant forecasts 40% drop in smartphone sales after US blacklisting nightmare
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Huawei is forecasting a 40% drop in international smartphone sales in 2019 after it was blacklisted in the US.

Reuters
Ren Zhengfei.JPG
  • The firm's CEO Ren Zhengfei confirmed the news at an event on Monday after it was first reported by Bloomberg.
  • The outlook is so bad that Huawei is considering pulling the Honor 20 phone, which launches in Europe later this month.
Huawei has confirmed that it is anticipating a giant drop in smartphone sales this year after it was blacklisted by US President Donald Trump's administration.
Speaking at a livestreamed event at Huawei's headquarters in Shenzhen on Monday, the company's founder Ren Zhengfei confirmed a report by Bloomberg that sales of its phones outside of China could plummet 40%.

Citing sales and marketing sources, Bloomberg pegged the drop at between 40% and 60%, which it said would equate to a decline in shipments of between 40 million and 60 million smartphones. Huawei said it shipped 206 million phones last year.

Read more : Here are all the big companies that have cut ties with Huawei, dealing the Chinese tech giant a crushing blow
Ren's guidance was at the lower end of this forecast. "Yes, it dropped by 40%," he told an audience of journalists and academics following a question from a Washington Post reporter.
The global picture is so bad that Bloomberg reported that Huawei is considering pulling its latest phone launch, the Honor 20. The device launches in the UK and France on June 21, but the firm may halt shipments if demand is low, the report said.

Honor/YouTube
Honor 20
The crippled shipping forecast shows the extent of the global anxiety sparked by America's decision to blacklist Huawei, meaning companies will need express permission to do business with the Chinese firm.
The move which the US says is because Huawei poses a national security risk because it believes it is a proxy for Chinese surveillance has forced the hand of some of Huawei's most critical partners, most notably Google.
The Alphabet-owned company plans to cut off Huawei's access to the Google version of Android, meaning new users will not have access to things like the Play Store. Although Huawei is preparing its own operating system, Google's decision could be a big reason why people are choosing to avoid Huawei when buying a new phone.
Support for Huawei in its homeland remains high, however. Huawei founder Ren said sales in China are growing at a pleasing rate, suggesting that this could make up for some of the decline in international sales. "The growth in China is very fast," he said.
Ren also struck a conciliatory tone at the event on Monday, saying Huawei's openness to collaboration with the US will "never change" and the firm wants "to serve the American people."
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See Also:

SEE ALSO: Facebook is the latest company to dramatically sever ties with Huawei
 

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spear

Village Sponsor
#3
Whatever Huawei loses now is just for the short term. 5G infrastructure build will more that recoup that lose. They are currently rolling our China first 5G platform at a cost of $50 billion. Germany and Italy have refused to ban them as well. Whichever direction Berlin goes, europe follows. Meanwhile they will roll out their own OS this year and I bet it will be just be like Android or better. They just need it to be capture their own domestic 1 billion people market and they are on the black.

The video below is in Mandarin but I just wanted you to see the 5G speed test. Both the phone and infrastructure are Huawei

 

kapitan

Village Elder
#4
Whatever Huawei loses now is just for the short term. 5G infrastructure build will more that recoup that lose. They are currently rolling our China first 5G platform at a cost of $50 billion. Germany and Italy have refused to ban them as well. Whichever direction Berlin goes, europe follows. Meanwhile they will roll out their own OS this year and I bet it will be just be like Android or better. They just need it to be capture their own domestic 1 billion people market and they are on the black.
Loosing is still losing. A loss of an inch or loss by a mile is still a loss, and at the moment Huawei is lost, simply put, Huawei is facing the wrong side of the gun
 

Soprano

Village Elder
#6
That's a FORECAST. Perhaps it will be worse, but it might turn out that they are wrong. A powerful global government is undermining their business with bad propaganda and trade bans. On the other hand, iPhone sales are declining even without any ban or bad publicity at all! Let's wait and see.
 

kapitan

Village Elder
#7
The world does end with the present. Today's lose is tomorrow's gain.
We may learn a lot from the Huawei -Us experience. It will form interesting business studies like " How Huawei conquered the world " or " Why Huawei learned the wrong way" or " Why not to f**k with Uncle Sam: The Huawei experience" Am sorry @spear nobody knows about tomorrow, what we can do is wait and see, but history can give us a sneak peek of the future. The night templars were the Huawei of their time, they had gold, a lot, and a huge army and a vast trading network. They used to loan governments money , but they were fucked up by a king. I will repeat again, don't f**k up with governments...they have all the time.
 

spear

Village Sponsor
#8
We may learn a lot from the Huawei -Us experience. It will form interesting business studies like " How Huawei conquered the world " or " Why Huawei learned the wrong way" or " Why not to f**k with Uncle Sam: The Huawei experience" Am sorry @spear nobody knows about tomorrow, what we can do is wait and see, but history can give us a sneak peek of the future. The night templars were the Huawei of their time, they had gold, a lot, and a huge army and a vast trading network. They used to loan governments money , but they were fucked up by a king. I will repeat again, don't f**k up with governments...they have all the time.
The reason why Safaricom and all other telecom firms are picking Huawei for infrastructure build is fair price, bigger coverage, superior quality build, easy to operate, easy to maintain, easy to upgrade, low power usage, low carbon footprint and great after sales services. They are not picking Huawei just for the badge or name. It didn't replace Nokia, Ericsson etc without having a strong reason. This is the same reason why Huawei handsets also rivaled all. Samsung cancelled its launched folding phone after it become clear Huawei has a superior handset. IPhone has non in production. They had even taken over premium phone market. Huawei has been clear that they have enough in reserves to outlive this short bump and will only increase its innovative features to draw in more people.
 

Sambamba

Village Sponsor
#9
The move like everyone in the tech industry is saying will backfire badly .What Trump is essentially telling Samsung Nokia Erickson ,Xiaomi and other tech companies is that if the US has a problem with their governments ,their business will be killed .Companies from now decouple as much as they can from US suppliers and five years from now ,Americans will start coming to terms with how they lost the tech race and dominance
Huawei's phone shipments might have dropped 40 but what you wont be told is that that US chip companies are feeling the heat .Their sales and outlook is gloomy as Chinese companies continue looking for alternative suppliers .There is reason why the big tech companies are against the ban .
Anyway this is what the reputable Financial Time had to say of the ban

https://www.ft.com/content/8fc63610-88fe-11e9-b861-54ee436f9768

At first sight, the recent US executive order blacklisting Chinese group Huawei looks like a classic Donald Trump move: brash, assertive, nationalistic. But look closer and it is clear that putting “America first” could ultimately mean the US finishes last. The US pushback against Huawei began with its 5G infrastructure business. Citing security concerns, the US made a concerted effort to convince western allies to drop the company from their 5G networks — with mixed success. The fight has now morphed into a broader ban that makes it near impossible for US companies — and any firm with US interests — to do business with any part of the Huawei empire. That includes Huawei’s up-and-coming consumer division, the world’s second-biggest smartphone producer. For Huawei, it looks like a body blow. US groups such as Qualcomm must stop supplying it, but so must UK-based Arm, which has American ties. Then again, Huawei is the world’s biggest telecoms equipment manufacturer, and only draws a small, if important, part of its inputs from the US. The Chinese group could work round the ban, if it finds suppliers to replace the high-end mobile phone glass it gets from Corning. Any short-term benefit to Huawei’s US competitors will be offset by hits to the company’s suppliers and customers as well as reduced impetus for innovation. Further out, this protectionist move will encourage Huawei and other Chinese groups to develop their own technology. Given how far they have already come, that might wind up doing further harm to US suppliers and their dominance of the market.

However, devices such as phones do not stand alone. They are part of ecosystems, such as Google’s Android platform and related apps including Netflix, WhatsApp and YouTube. Devices, operating systems, apps, services and accessories come together to create a unified customer experience. These global ecosystems are largely managed by American companies, and the executive order all but forbids Google, along with US-based Android developers, from working with Huawei phones. In other words, President Donald Trump has banished Huawei from the Google ecosystem. Initially, losing Google’s ecosystem partners could hurt Huawei even more than having its supply chain upended, as customers may stop using Huawei kit that can’t offer the complements they know and love. But in the short to medium term we can expect Huawei to start building its own competing ecosystem, while protecting its position in China and other national markets. This rival ecosystem might not overtake Google’s Android, but Huawei would be foolish not to try. The challenge is clear — and if anyone can overcome it, it’s the Huawei of 2019. If this had happened four years ago, the technology gap might have been too wide for the Chinese group to bridge. But today’s Huawei might rise to the dare and win — and that would transform the entire mobile sector. The Trump administration hasn’t just stepped up the trade war; it may have changed the future face of mobile technology. Without an external shock, Huawei could have profitably stuck with Google’s ecosystem. But now the gauntlet is down: Huawei and others have been pushed to challenge Google’s dominance to ensure their own survival. Google understands the risk to its dominance. It has just asked for the Android operating system to be exempted from the export ban. But it may be too late. Even if the Trump administration agrees or it lifts the ban as part of a broader trade deal, the Rubicon has been crossed, and the risk to Huawei and other Chinese companies has become visible. These actions by the Trump administration have not only pushed us closer to a world split between a “Chinese-based” and “US-based” internet; they may also have dented the ability of America’s tech champions, especially Google, to maintain their dominance. This brash nationalistic trade policy may end up backfiring badly. The game is on.
 

sitaki

Village Elder
#11
The reason why Safaricom and all other telecom firms are picking Huawei for infrastructure build is fair price, bigger coverage, superior quality build, easy to operate, easy to maintain, easy to upgrade, low power usage, low carbon footprint and great after sales services. They are not picking Huawei just for the badge or name. It didn't replace Nokia, Ericsson etc without having a strong reason. This is the same reason why Huawei handsets also rivaled all. Samsung cancelled its launched folding phone after it become clear Huawei has a superior handset. IPhone has non in production. They had even taken over premium phone market. Huawei has been clear that they have enough in reserves to outlive this short bump and will only increase its innovative features to draw in more people.
I think they released the same to reviewers and pulled back because of the folding damage issue, actually huawei have also delayed the launch of their equivalent folding phone after what they saw happening to samsung.
 

spear

Village Sponsor
#12
I think they released the same to reviewers and pulled back because of the folding damage issue, actually huawei have also delayed the launch of their equivalent folding phone after what they saw happening to samsung.
9 out of 10 of prospective buyers picked the Huawei. It was more than just the fold. The Huawei build quality was superior and screen bigger.

 
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imp

Village Elder
#13
huawei will suffer but so will American companies,when you consider that the Chinese are rallying their 1 billion strong population to avoid buying American products like apple and ford.

What Trump doesn't realize is that unlike the Japanese trade war in the 80's the Chinese are really big, big enough to cushion their own companies.
 

kapitan

Village Elder
#14
9 out of 10 of prospective buyers picked the Huawei. It was more than just the fold. The Huawei build quality was superior and screen bigger.

So lets wait and see what Huawei will assemble without American tech, remember that fold screen is corning gorrilla glass.
 
#15
Even if Huawei lost 90% of its business, the 10% remaining is still massive.
You can't kill such a company.

Those looking at sales right now should check back in 5 years time when Huawei comes for Google's OS market share.
Right now Google is wetting its pants because the more people stop using the Android, the more people stop using their other services.
Explains why they are lobbying to exclude Android from the ban.
 

sitaki

Village Elder
#16
huawei will suffer but so will American companies,when you consider that the Chinese are rallying their 1 billion strong population to avoid buying American products like apple and ford.

What Trump doesn't realize is that unlike the Japanese trade war in the 80's the Chinese are really big, big enough to cushion their own companies.
economics is a weird subject, the population of say the us and western europe is around half that of china, looking at populations one would expect that china would not even need the rest of the world, I mean if huawei just sold their phones locally that is a market way bigger than the west, add 1 billion africans and 1 billion indians - one wonders why they even bother with the tinny population from the west.
 

Lyapunov

Senior Villager
#17
Both US and Shina will suffer but China could suffer more and never recover. You see the Chinese are just busy copying American tech, everything they have is based on American tech they are just busy perfecting it. Research and development are really expensive and will always determine who wins the tech race that's where American companies win. Huawei will build its own OS but competing with Android is a war they may never win. Google services are deeply rooted into our ecosystem and replacing it is a harder than we could imagine. It's harder to beat American tech giants at their own game that's why Google was unable to beat Microsoft in Computer OS. Even Samsung, the biggest phone manufacturer have their OS Tizen but cannot challenge Android same case with Windows mobile and Blackberry which have now been discontinued. Huawei will win in China coz Android is banned there but in the rest of the world luck may not be on their side. Lastly developing an operating system is one thing but getting developers to join the bandwagon is another without mentioning fine tuning it to the likes of Android and iOS which may take years. How will Huawei get non-Chinese to migrate from Gmail, Google Maps, You tube, Whatsapp, Facebook and the rest coz this means creating a new ecosystem. To be sincere the entire tech ecosystem is supported mostly by American tech and a few other tech companies from Europe and Asia where Huawei hails from. If you look closely you will realize Asia just exports hardware and software is from the west for example Processors from Taiwan. The real design comes from the US and Europe which also happen to be the biggest consumers due to their high GDPs and which Huawei desperately needs. So Huawei can choose to concentrate in China and sell millions of devices but just low end and mid-flagships which don't earn them as much as selling flagships products in the West.
 

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