Huawei sales and marketing managers are internally charting a drop in volumes of anywhere between 40 million to 60 million smartphones this year. (Representational Image)
Huawei Technologies Co. is preparing for a 40% to 60% drop in international smartphone shipments as the Trump administration's blacklisting hammers one of the Chinese tech giant's most important businesses.
Huawei sales and marketing managers are internally charting a drop in volumes of anywhere between 40 million to 60 million smartphones this year, the people said. That's a big chunk of an international business that in 2018 accounted for almost half of the 206 million phones it moved.
The unusually wide range underscores the uncertainty gripping Huawei, a Chinese national champion that Washington accuses of aiding Beijing in espionage -- something the company has repeatedly denied.
"Huawei will lose access to Play Store and key Google apps like YouTube and Gmail. Users will have to sideload or look for alternative app stores," Counterpoint analyst Tom Kang wrote in a report following the ban. "The impact on emerging markets will vary. However, Europe, Japan, and Latin America will be heavily affected."
Priced at 399 pounds ($500), the Honor 20 runs on the most advanced Android 9 software and is the latest in a line that's won over budget-conscious consumers, including in the U.S. While it's powered by the company's own Kirin chip, meaning it doesn't need Qualcomm Inc. processors, the ban will hamstring consumers' ability to update the OS or download the latest Google apps.
Faced with lukewarm international demand, Huawei -- which in 2018 overtook Apple Inc. to become the worldGs No. 2 smartphone vendor -- is turning inward.
Huawei's China smartphone market share could grow to as much as 45% versus a previous estimate of between 30%-35% thanks to "a more proactive sales strategy" after the Trump ban, TF International analyst Ming-Chi Kuo wrote in a report on Wednesday.