Trump ban could cause Huawei's smartphone shipments to drop 60% this year

The company may not be able to beat Samsung anytime soon.

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What you need to know

  • Huawei is expecting smartphone shipments in overseas markets to drop by up to 60% this year.
  • Sales and marketing managers at Huawei believe international shipments may drop in volumes between 40 million to 60 million.
  • The recently launched Honor 20 may be discontinued if sales are below expectations.

Shortly after Huawei was put on the Entity list by the Trump administration, many began speculating that the move could greatly hurt the company’s sales in markets outside China. Bloomberg has now published a new report that suggests Huawei is preparing for up to a 60% drop in smartphone shipments in overseas markets. The company is also said to be mulling discontinuing the Honor 20 in international markets.

Citing internal sources, the report claims Huawei is expecting its international smartphone shipments to drop in volumes between 40 to 60 million units this year. International shipments accounted for nearly half of the company’s total shipment volume in 2018. Earlier this year, Huawei had set its annual smartphone shipment goal at 250 million units. In case global shipments do end up dropping by around 60 million, it would mean Huawei might end up shipping fewer number of phones this year than it did last year. The company set a new record last year by shipping more than 200 million smartphones.

In addition to preparing itself for a massive drop in sales overseas, the company is closely monitoring the launch of the Honor 20, which made its global debut in London last month. The Honor 20 is slated to go on sale in parts of Europe on June 21. In case the smartphone fails to sell in decent numbers, Huawei may consider cutting off shipments. In France, two of the country’s biggest carriers have reportedly shown no interest at all in the latest Honor smartphone.

Last week, Huawei announced that the global launch of its Mate X foldable smartphone has been delayed to September. The company decided to delay the launch of the Mate X in order to conduct “extra tests” to make sure that its first foldable smartphone works exactly as intended when it goes on sale. While Huawei has confirmed that the Mate X will ship with Android out of the box, the device may not be able to receive any major updates if the ban comes into full effect. The temporary license granted by the United States Commerce Department will expire on August 19.

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