Chinese telecoms equipment giant Huawei Technologies is preparing for a 40-60 percent slide in international smartphone shipments in the wake of a US trade blacklist, Bloomberg reports, citing sources.
The Chinese firm is crunching internal estimates and exploring options that include pulling the latest model of its marquee overseas smartphone, the Honor 20, the report said.
The device begins selling in parts of Europe June 21 including France and the UK, but executives are monitoring the launch and may cut off shipments if it sells poorly, according to the report.
Huawei sales and marketing managers are said to be internally charting a drop in volumes of anywhere between 40 million to 60 million smartphones this year.
That’s a big chunk of an international business that in 2018 accounted for almost half of the 206 million phones the company shipped overall, Bloomberg noted.
Last month, the Trump administration blacklisted Huawei, choking off the American components and software it needs to run its businesses.
That includes updates for the Google Android system that powers all its smartphones abroad. Without that software, devices like the Honor 20 wouldn’t be able to run critical apps like Google Maps and Gmail, the report noted.
Faced with lukewarm international demand, Huawei is turning inward.
The company aims to grab as much as half of the smartphone market in China in 2019 to offset the decline overseas, the report said.
Huawei will try to boost domestic shipments by investing in marketing and expanding distribution channels.
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