What just happened? We know the ban on US companies doing business with Huawei is having a profound effect on the tech industry, and it is causing plenty of problems for the firm itself. The Chinese giant has indefinitely postponed the launch of a Windows laptop, marking the first time it has had to cancel a product as a result of being blacklisted.
As reported by The Information, Huawei had planned to unveil the latest entry in its well-received MateBook line at the CES Asia 2019 trade show in Shanghai, but the company’s recent placement on the US government’s entity list, which bars US firms from doing business with Huawei without a license, means the announcement has been put on hold indefinitely.
Speaking to CNBC, Richard Yu, CEO of Huawei’s consumer division, confirmed the report. “We cannot supply the PC,” he said, calling the situation “unfortunate.” When asked if the laptop might launch at a later date, Yu said it depends on how long Huawei remains on the entity list.
With Huawei’s laptops packed with hardware and software from US companies, the move doesn’t come as a total surprise, especially as DigiTimes reports that Huawei has asked its laptop supply partners to suspend deliveries, and has stopped its new laptop projects.
Last month saw Microsoft remove Huawei laptops from its store, suggesting the Redmond firm is complying with the government ban. Microsoft still hasn’t confirmed if it will stop Huawei from receiving Windows licenses.
Huawei is reportedly hoping to lessen the effects of the ban by stockpiling components and developing its own Windows and Android alternatives, and while laptops only represent a fraction of the company’s profits, the cancelation of the latest MateBook could be an ominous sign of things to come.
It was reported last week that the Huawei ban could see DRAM prices fall an extra 25 percent this year.