Huawei has revealed that sales of its handsets have dropped by 40% in the past month, blaming the slump on the US' backlash against the firm.
The bleak statistics were revealed by Huawei founder Ren Zhengfei at the firm's headquarters where he also revealed the company planned to cut back production by $30bn.
Under the Trump administration, the Chinese telecoms giant has faced increasing restrictions from the US government and last month was added to a list of companies that US firms cannot trade with without a license. The US argues that Huawei poses a security risk and has urged its allies to follow its suit in imposing sanctions on the company.
"We didn't expect the US to attack Huawei with such intense and determined effort," Ren Zhengfei said. "We are not only banned from providing targeted components but also from joining a lot of international organizations, collaborating with many universities, using anything with American components or even connecting to networks that use American parts."
He added: "We are like a damaged plane that protected only its heart and fuel tank but not its appendages. Huawei will get tested by the adjustment period and through time. We will grow stronger as we make this step."
Earlier this year, Huawei predicted sales of $125bn in 2019, but it is now expected to stay flat at $100bn in 2019 and 2020. However, Ren Zhengfei claimed that the company would "regain vitality" in 2021.
He added that, while overseas sales had slumped significantly, in China they continue to grow "very fast".