That's just Huawei it goes, shrugs founder as analysts forecast sales slump for embattled biz | 5/24/2019 | Staff
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Analysts are predicting a big slump in sales for Huawei thanks to the US Department of Commerce and the ongoing trade wars.

But the majority of analysts are hedging their bets on exactly how big that slump will be. Most observers predict a fall in handset sales. Reuters managed to wring a figure of between 4 and 24 per cent from Fubon Research and Strategy Analytics.

Trump - Seesawing - Range - Firms - Contact

Given Trump's seesawing, such an absurdly wide range seems fair. US firms were banned from any contact with Huawei then days later given a three-month reprieve. Trump has recently changed from describing Huawei as very dangerous to saying it could be included in a future trade deal.

In a freewheeling interview with assorted media, Huawei's boss Ren Zhenfei waxed lyrical about his desire to continue working with international partners and downplayed the importance of the US market – where Huawei handset sales languish and are not sold by any major carrier.

Ren - Huawei - Dozens - Consultancies - IBM

Ren noted that Huawei works with dozens of US-based consultancies including IBM and Accenture and credited them with helping build the company. He also said that in 2000 Huawei was on the brink of selling to a US firm.

"While we were waiting for approval, the negotiation team, including me, all put on floral-print clothes, running and playing ping pong on the beach,"he reminisced.

Change - Directors - US - Board - Deal

But a last-minute change of directors saw the US board reject the deal. Ren said that since then the company knew it would "have to square off against the US when we reach the top".

He said the company had long run a "spare tire" or Plan B strategy. He admitted that some minor products lack such a spare tire and would be hit hard by US sanctions and likely phased out. But he...
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