Huawei expects a $10 billion dip in smartphone revenues due to US ban

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Huawei’s H1 financial report showed the company’s revenues grew by 23% over last year and it pushed 118 million smartphones despite the negative impact of the US trade ban.

The Chinese tech giant expected to accumulate significant losses after it was put on the Entity List but now it has adjusted its prediction and it estimates its consumer business department will miss on $10 billion of revenue, a third lower than initial estimates.

Huawei Deputy Chairman, Eric Xu gave the latest prediction during a Q&A session following the announcement of Huawei’s new Ascend 910 AI chipset meant for data centers. According to Xu the ban has definitely affected Huawei’s business strategy going forward but the potential losses for its smartphone division aren’t as big of a threat as

previously expected.

Huawei recently received another 90-day extension to its temporary trade license from the US Commerce Department. There are high hopes that China and the US will reach an agreement to their ongoing trade dispute before the new license expires but judging by the past developments, nothing is certain.

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