One month after Huawei was put on a commercial blacklist by the Trump administration, Huawei is expected to see its international shipments drop 40% to 60%. According to a report in Bloomberg, Huawei could discontinue delivery of Honor 20, its flagship overseas market, on poor sales.
The US Department of Commerce banned Huawei from buying parts of US companies in May without prior approval from Washington, claiming that Huawei was a potential threat to national security. After the ban, Huawei's founder and CEO Ren Zhengfei said the blacklist could slow the company's growth, but "only marginally." Internally, a drop in shipments between 40 and 60 million smartphones is forecasted. The Honor 20 will be on sale in parts of Europe, including France and the United Kingdom, on 21
To offset the expected decline in international shipments, Huawei aims to catch up with half of the Chinese smartphone market this year. According to Canalys, Huawei was the only company among the top five Chinese smartphone providers to grow as the rest of the market declined over the past year, reaching a market share of 34%. However, it has to fend off competition from Oppo and Vivo, both updating their product strategies to cover more consumer segments. Bloomberg reports that Huawei wants to increase sales by spending more on marketing and expanding its distribution channels. However, some executives have stated that the target is too high.
In the US, the blacklist for trading also affects some of Huawei's key chips from suppliers, including Qualcomm, Intel and Xilinx. According to Reuters, representatives of some companies have met with the Commerce Department to lift restrictions on parts of common devices that they claim are not security concerns, such as smart phone chips.