Huawei expects international smartphone shipments to the plum – TechCrunch

One month after the Trump administration has been put on a blacklist for trading, Huawei is reportedly maintaining for international transfers of its smartphones to drop by 40% to 60%. According to a report in Bloomberg, Huawei may end up pulling shipments of Honor 20, the overseas market flagship, if sales are poor.

The US Department of Commerce prevented Huawei in May from buying parts from US companies without prior approval from Washington, claiming that Huawei is a potential threat to national security. According to the ban, Huawei's founder and CEO Ren Zhengfei said the blacklist could reduce the company's growth, but "just a little."

But Bloomberg reports that the company is now preparing for international shipments to the plum, with Huawei's sales and marketing manager internally estimating a drop in shipping volumes between 40 million to 60 million smartphones. The Honor 20 comes on sale in parts of Europe, including France and the UK, June 21[ads1], but Huawei may stop shipping if it sells poorly.

To compensate for the expected decline in international shipments, Huawei wants to seize half of China's smartphone market this year. According to Canalys, Huawei was the only company among China's top five smartphone providers to report growth when the rest of the market fell last year and achieved a market share of 34%, but it is still necessary to stave off the competition from Oppo and Vivo, which are both refreshing. product strategies to cover several consumer segments. Bloomberg reports that Huawei wants to increase the transfers by spending more on marketing and expanding distribution channels, but some managers have said the target is too high.

At the same time, in the United States, the black list of trade also affects some of Huawei's most important chip suppliers, including Qualcomm, Intel and Xilinx. Reuters reports that representatives from some companies have met with the Commerce Department to lift restrictions on parts for common devices that they say do not present security issues, such as smartphone games.