Huawei expects its international phone shipments to drop by as much as 60 million units in 2019
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Last year Huawei shipped 206 million handsets worldwide. The company saw its momentum continue in the first quarter of this year with deliveries of 59 million units globally; that was a 50.3% year-over-year gain and made Huawei the second largest smartphone manufacturer in the world during the three-month period. It appeared that nothing could stop the company from surpassing Samsung to become the world's largest smartphone manufacturer next year. Back in 2016. Richard Yu, CEO of Huawei's consumer business group, said that the company would top Samsung and Apple by 2021 and Huawei was set to accomplish this task a year earlier than expected. But one move by the U.S. government set off a chain reaction that has changed everything.
Huawei could cancel the release of the Honor 20, set to be released Thursday
Bloomberg reported on Sunday that as a result of its placement on the Entity List, Huawei itself expects a steep 40% to 60% decline in international phone shipments this year. About half of the units shipped last year were delivered to international buyers, so Huawei's own computations show it will ship 40 million to 60 million fewer smartphones outside of China in 2019. That is a pretty wide range, but the company itself can't come up with a better estimate because of the uncertainties surrounding it.

Huawei might quickly stop shipping the Honor 20 if initial sales are as poor as expected
The company is testing its Hongmeng operating system (aka ArkOS) and at the same time is said to be considering a Russian OS known as Aurora. The latter derives from Jolla's SailfishOS, which itself evolved from the gesture-based MeeGo operating system. Huawei has stockpiled a year's worth of chips and components, but it does have some big issues here. Yes, the firm's HiSilicon unit does design its own chips, but it uses software from U.S. companies to do this. In addition, with the U.K.'s ARM Holdings deciding to drop Huawei as a customer (some of its technology is U.S. based, ARM has said), the phone manufacturer will need to find a chip designer without ties to the states that offers a chip architecture it can use.
"Huawei will lose access to Play Store and key Google apps like YouTube and Gmail. Users will have to sideload or look for alternative app stores. The impact on emerging markets will vary. However, Europe, Japan, and Latin America will be heavily affected."-Tom Kang, analyst, Counterpoint Research
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