Huawei Technologies earlier estimated a reduction in sales of over $30 billion after the United States imposed blacklist under its ‘Entity List’ thereby restricting any U.S. companies and services from providing their products or services to the Chinese based Huawei. Although the U.S. has relaxed the situation a bit, Huawei estimates that it’s unit’s revenue are lower by almost $10 billion compared to last year.
Back in May 2019, the U.S. imposed the so-called ban on Huawei thereby putting the $100 billion business in jeopardy. Since the ban restricted any U.S. based companies or products from being manufactured or supplied to Huawei, Ren Zhengfei, CEO of Huawei, claimed that the company would lose $30 billion in revenue that will restrict its position on the second spot after it overtook Apple in terms of units shipped annually earlier this year.
After days of discussions, U.S. agreed to offer a 90-days reprieval period that ended on August 17 and has already assigned a 90-days extension where Huawei will have to secure permits that it needs to use technologies and products based in the U.S. such as the Google Android OS, a few technologies and architecture from British-based ARM, Micron, Intel and others where most of the companies back out days after the ban was imposed.
As per the figures, Huawei reported revenue of CNY 349 billion in 2018 and estimates almost $10 billion reductions in revenue this year. Huawei did suffer tremendously in global markets but thanks to the patriotic purchases and countless promotions, it managed to strike the most smartphone sales in June quarter which kind of offset the global slump in the revenue taking Huawei to almost CNY 221 billion in revenue in the first half of 2019.
At the moment, the U.S. has extended the reprieval period by 90-days for the said matters. Huawei did mention earlier that it was developing its in-house operating system in case its worst scenarios with the United States cause Google to pull the plugs on its Huawei and Honor smartphones. However, Huawei recently launched HarmonyOS which isn’t meant for smartphones or at least the company don’t want to use it unless it is extremely important in which case, Huawei may release HarmonyOS to smartphones via OTA although it remains a confusing matter if Google will still support older Huawei & Honor phones with its Android OS.
Huawei launched its Ascent 910 AI chipset which isa 7nm chipset from HiSilicon based on the ARM architecture and possess the highest computing power among any chipsets in the world. According to FirstPost, Ascend 910 AI SoC uses perpetual ownership of ARMv8 license along with ARM thereby discounting it from the affected units.
The U.S. has also added 40 units used by Huawei for which, the company will have to obtain permits before the reprieve period ends.
