Huawei says impact of U.S. curbs not as bad as feared
Chinese technology giant Huawei said on Friday the impact of U.S. trade restrictions on its business will be less than what it initially feared, though the curbs could push its smartphone unit’s revenue lower by about $10 billion this year.
Francis Maguire reports.
Huawei launched Friday what it calls the 'world's most powerful artifical intelligence processor' - the Ascend 910.
But the flashy new chip wasn't the only big focus at the event in Shenzhen, China.
As Huawei executives faced questions over the impact of U.S. sanctions which have hurt the Chinese tech giant since mid-May.
Their message to anyone worried about more restrictions?
'We're fully prepared'.
They also had a more optimistic tone about potential losses than investors heard in June, When Huawei CEO Ren Zhengfei warned U.S trade sanctions could hit revenue by $30 billion this year.
(SOUNDBITE) (Mandarin) HUAWEI DEPUTY CHAIRMAN ERIC XU, SAYING: "This year seems not as bad as the CEO said.
He forecast that sales would drop 40 percent, which was a pessimistic forecast.
Now the situation is much better that what he forecast.
But we can still see a 10 billion US dollar sales reduction (in smartphones)." Washington accuses Huawei of espionage and stealing intellectual property.
It was due to ban the firm buying products from U.S. firms this week, But gave Huawei a 90-day reprieve in order to supply existing U.S. customers who might need more time to move away from the firm.
Though the U.S. did still add more than 40 of Huawei's units to its economic blacklist.