Huawei founder says revenue will be billions below forecasts

Huawei founder says revenue will be billions below forecasts

Huawei’s founder has likened his company to a badly damaged plane, and said revenues will be 30 billion US dollars (£24 billion) less than forecast over the next two years.

Ren Zhengfei said at company headquarters in Shenzhen that the Chinese telecom giant will reduce capacity, but insisted that US moves to restrict its business “will not stop us”.

He said the company expected revenues of about 100 billion dollars (£79 billion) annually for the next two years, compared to 105 billion dollars (£83 billion) in 2018. In February, he said the company was targeting 125 billion dollars (£99 billion) in 2019.

The US government has put Huawei on a blacklist, meaning that American companies that want to sell parts to the Chinese firm will need approval from Washington’s commerce department.

Mr Ren prepares to speak at the telecom giant’s headquarters in Shenzhen (AP)
Mr Ren prepares to speak at the telecom giant’s headquarters in Shenzhen (AP)

American officials have accused Chinese technology companies such as Huawei of stealing trade secrets and threatening cyber security – possibly at the behest of China’s ruling Communist Party.

The action comes as Huawei and its competitors prepare to launch next generation 5G mobile networks.

Mr Ren said there are no “backdoors” in its equipment that anyone could access, and that Huawei is willing to enter into an agreement over the security of its products with any nation that wants one.

The Huawei founder said it had never occurred to executives that the US government would be so determined to take such a wide range of what he called extreme measures against the company.

“I think both sides will suffer,” he said. “No-one will win.”

- Press Association

More on this topic

Huawei UK boss insists ‘nothing has changed’ despite US trade restrictionsHuawei UK boss insists ‘nothing has changed’ despite US trade restrictions

US firms find legal route around Huawei blacklistUS firms find legal route around Huawei blacklist

Huawei laptops return to Microsoft online storeHuawei laptops return to Microsoft online store

Huawei accused of pushing adverts to phone lockscreensHuawei accused of pushing adverts to phone lockscreens

More in this Section

OBR warns no-deal Brexit could push UK economy into recessionOBR warns no-deal Brexit could push UK economy into recession

Asos warns on profits over warehouse problemsAsos warns on profits over warehouse problems

Warning economy close to overheating; think tank recommends taxing the richWarning economy close to overheating; think tank recommends taxing the rich

Global publishing group announce 135 jobs in WaterfordGlobal publishing group announce 135 jobs in Waterford


Lifestyle

Breanndán Ó Beaglaoich will not let a day pass without his ritual dip in the sea, which he describes as the best anti-depressant ever, says Lorna Siggins.Taking the plunge has a depth of benefits

10% of women suffer from it worldwide.As Alexa Chung reveals she has endometriosis, here’s everything you need to know about the condition

Pinnies, cookie cutters and wooden spoons at the ready.Food projects to do with the kids this summer

Stop. Climbing. Uluru.As tourists rush to climb Uluru despite an incoming ban – 5 ways to enjoy the rock respectfully

More From The Irish Examiner