Huawei’s founder Ren Zhengfei says his company expects revenue of $100 billion ($134 billion CAD) this year and the next as a result of U.S. President Donald Trump’s ban, adding that the ban could hit revenue by $30 billion USD (about $40 billion CAD).
Reuters reported this would be the first time the company has released a monetary impact report related to the ban.
Trump signed an executive order in May that would put several companies, including Huawei, on an Entity List if they posed a national security threat to the country. As a result, U.S. companies are not allowed to do business with Huawei, and they have until August to find alternative arrangements should they be doing business with the company.
News of a revenue dip also comes several weeks after Huawei said it would survive despite a ban.
Without specifying a time frame, Ren also said that smartphone shipments will drop by 40 percent.
In 2018, the company reported a revenue of 721.2 billion yuan ($139.6 billion CAD).
“We cannot get components supply, cannot participate in many international organizations, cannot work closely with many universities, cannot use anything with U.S. components, and cannot even establish connection with networks that use such components,” Ren said.
“We did not expect they would attack us on so many aspects.”
He did note that the company doesn’t plan to cut research and development spending.
In Canada, the company is still under review and a decision on whether or not it will participate in Canada’s 5G rollout.
The company’s Canadian division has been functioning regularly as it continues its 4G LTE expansion in the north with a partnership with mobile network operator and telecom company Ice Wireless.