Huawei abandons MateBook laptop launch as US sanctions bite
Unable to use Windows, or AMD or Intel CPUs, Huawei 'indefinitely postpones' new MateBook launch amid speculation it will withdraw from laptop market
Huawei has abandoned plans to launch a new range of MateBook laptops as a result of US trade sanctions preventing it from using Microsoft Windows, as well as Intel and AMD microprocessors.
The move was confirmed by Huawei CEO Richard Yu, following on from reports in The Information. He told CNBC that the launch had been put on hold indefinitely, and indicated that it would be unlikely to appear as long as Huawei is listed on the US Entity List.
As a result of the disruption caused by the US sanctions, not to mention the slim margins, Taiwanese electronics site Digitimes has suggested that the company could abandon the laptop market entirely. According to Digitimes, the company has already cancelled components orders with suppliers, while others have been told to suspend deliveries.
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Alternatively, the company could try selling the unit to a rival, such as Lenovo, although that would almost certainly be mired in anti-trust scrutiny before it is completed.
Both Intel and AMD will be subjected to the embargo on Huawei, While Intel has fabrication facilities in China, they produce 3DNAND and 3DXPoint non-volatile memory, rather than CPUs. Likewise, Cambridge, England-based ARM has also barred staff from working with Huawei following legal advice.
And, while Microsoft has remained relatively tight-lipped over the US action, it has removed all references to Huawei's top-of-the-range MateBook X Pro laptop from the Microsoft Store, leading to speculation that the company will be barred from using Windows.
It won't just be production of laptops affected by the US sanctions but, according to Digitimes Research, smartphones with shipments of Huawei devices expected to fall substantially this year.
Sales of consumer electronics comprise around half of Huawei's total revenues of $107 billion.
An alternative source of x86-compatible microprocessors could be the Via Technologies joint venture with mainland Chinese firm Zhaoxin Semiconductor, but that is still some years off from having even a halfway-competitive product.
In any case, there would almost certainly be technology licensing issues attached to the use of such products.
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