Huawei Technologies CEO Ren Zhengfei has said that he underestimated the impact of the US ban on the company. Speaking at the company headquarters in Shenzhen, the founder said that the company has been hit hard than expected.

Revenue to decline by up to $30 billion

The company’s revenue will drop to $100 billion in 2019 and 2020 from the anticipated $125 billion that was projected in February

For the first time, the Chinese telecommunication giant has quantified the impact of US sanctions. The downbeat assessment by the CEO comes weeks after company executives boldly claimed that the company was technologically independent. Ren said that they did not anticipate the determination from the US to impose sanctions would be such strong and pervasive. The CEO indicated that they did not expect the US to attack them on so many aspects, and he anticipates business revival by 2021.

The US has banned the supply of US technology to the Chinese company with companies such as ARM and Google expected to restrict or ceases any relationships with the company. The US holds that Huawei products pose a security threat to US communications something the company has denied.

Smartphone shipment to drop by 40%

The CEO indicated that international smartphone shipments are expected to decline by 40%, although he didn’t specify the period. Last year the company reported revenue of around $104.16 billion, and in February this year, they projected revenue to grow in a range of between $125 billion and $130 billion.

Ren stated that Huawei’s current situation is not a result of US businesses but one brewed by politicians having different ideologies. He said that the current state of the company will make both sides to lose, and none is likely to win.

With the ban, the company cannot get a supply of components or take part in a number of international organizations or collaborate with institutions or use any US component, and it cannot establish a connection with networks using such components. However, despite the setbacks, Huawei is determined to move forward with R&D, and they do not play to have a massive layoff.