Huawei founder Ren Zhengfei has said international product sales of the Chinese telecoms giant’s handsets have sunk 40% in the earlier month as a US-led backlash from the company intensifies.
Speaking at the firm’s headquarters, Mr Ren also reported the business would slash output by $30bn (£23.9bn).
Final month, the US place Huawei on a listing of businesses that American firms are unable to trade with except they have a licence.
The move marked an escalation in efforts by Washington to block Huawei.
The US argues that the Chinese enterprise – the world’s biggest maker of telecoms gear and the second most important smartphone maker – poses a security possibility.
“In the coming two years, the company will slash production by $30bn,” Mr Ren said at a panel discussion at the firm’s headquarters in Shenzhen.
Gross sales are now expected to remain flat at $100bn in 2019 and 2020. Earlier this 12 months, Huawei experienced predicted product sales of about $125bn for 2019.
Nonetheless, Mr Ren stated the firm would “regain [its] vitality” in 2021.
He also reported that though overseas smartphone profits experienced dropped sharply, in China growth remained “incredibly rapid”.
Paying on research and enhancement would not be cut, Mr Ren added, even with the anticipated hit to the firm’s funds.
The Huawei founder had previously downplayed the effect of the US restrictions on the Chinese company.
Having said that, the actions by the US have prompted tech organizations all-around the planet to retreat from Huawei.
Google barred Huawei from some updates to the Android operating procedure, this means new patterns of Huawei smartphones are set to get rid of accessibility to some Google apps.
Japan’s Softbank and KDDI have equally explained they will not sell Huawei’s new handsets for now.
United kingdom-dependent chip designer ARM explained to staff it must suspend business enterprise with Huawei, in accordance to internal documents received by the BBC.
Washington’s clampdown on Huawei is element of a broader drive-back from the organization, over worries about applying its products in up coming-technology 5G cell networks.
Numerous nations have raised fears that Huawei machines could be utilised by China for surveillance, allegations the organization has vehemently denied.
Huawei has mentioned its operate does not pose any threats and that it is unbiased from the Chinese authorities.
Nonetheless, some nations around the world have blocked telecoms organizations from utilizing Huawei products and solutions in 5G cellular networks.
So much the United kingdom has held back from any official ban.