When it comes to business, a company would always want to stay in the market for long term because no one likes to own such company which is not going to be a key player in that particular industry. It seems like the situation of Chinese tech giant is getting tough because according to revenue forecast report of Huawei it’s been predicted that the company is going to earn less than $30 billion because of the trade ban.
Ren Zhengfei, CEO and founder of Huawei, said that company is going to make less amount of revenue in the next two years as compared to earlier predictions. Now executives think that the company might not be able to earn $30 billion of revenues in the next two or three years because of the US ban. Analysts had expected Huawei as one of the most successful tech companies, but now it’s been predicted that it might earn a revenue of only $100 billion in the next upcoming years. Trade war issue with USA, which is going on from last few months has affected on Huawei’s valuation.
Trump administration on May 16 shocked everyone when they blacklisted Huawei and put a massive ban on it. Now since Chinese tech company is not doing any businesses with US-based customers and companies, that’s hurting its revenue sources severely. Google had already supported US government when they decided to cancel the Android license of Huawei. Now Chinese tech company will have to develop its own operating system which, according to many sources, might going to create problems for Google if it gets a good response. Still, the biggest threat which Huawei is facing is trading opportunities with US-based companies. Now it will be interesting to see how Huawei is going to manage this whole situation and regain its investor’s trust.
Paul is an American-based writer covering Latest business trends. Paul cover Business and media for many news sites. He has been breaking news and writing features on these topics for major publications since 2012. Paul prefers writing about business news keeping science and technology into perspective.