The impact Huawei's blacklisting at the hands of the U.S. will have on its smartphone business has been a hot topic for weeks. The company had just overtaken Apple for the number two spot globally, with only Samsung to catch, when its world changed after losing access to swathes of its hardware and software supply chain. Since then, speculation has continued to mount that the sales decline could be devastating.This is a kick in the nuts. No, that's not right. It's Sherman's March.
Now Bloomberg has cited internal sources to report that the Shenzhen manufacturer "is preparing for a 40% to 60% drop in international smartphone shipments," with "sales and marketing managers internally charting a drop in volumes of anywhere between 40 million to 60 million smartphones this year." Bloomberg also reported that the company is exploring options, including "pulling the latest model of its marquee overseas label, the Honor 20," if sales are poor, and early indicators, including "two of France’s largest carriers [not] bothering with the Honor at all," are not promising.
Trump's tariffs are hurting China's bottom line and also their pride. Huawei* is supposed to be the Chinese tech benchmark, like Samsung or Sony. Now they're shut out of the American market.
All that remains is for Trump to negotiate the terms of surrender.
As always, we fear what China will do to save face.
*We checked with a neighbor. It's pronounced Who-I.
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