Huawei Cancels Launch of New Laptop as U.S. Restrictions Sting
June 12 2019 - 2:52AM
Dow Jones News
By Stu Woo
HONG KONG--China's Huawei Technologies Co. canceled the launch
of a new laptop and paused production at its personal-computer
business due to restrictions on buying U.S. components, according
to a person familiar with the matter.
The moves marks Huawei's first tangible setback caused by the
U.S. Commerce Department's move to ban American companies from
selling supplies to the Chinese company.
Huawei, the world's No. 2 smartphone brand, has a relatively
small and new personal-computer business. It makes three laptops,
the first of which made its debut in 2016. It relies on Microsoft
Corp.'s Windows operating system and Intel Corp.'s chips.
The head of Huawei's consumer business, Richard Yu, told CNBC on
Wednesday that the Commerce Department caused the company to cancel
its new laptop launch, adding that it may never release that
product if it remains on the Commerce Department's blacklist.
DigiTimes reported earlier this week that Huawei halted laptop
deliveries and development.
The Commerce Department banned American companies from selling
components to Huawei due to national-security concerns, though it
has granted suppliers temporary 90-day exemptions. U.S. officials
say Beijing could order Huawei to tap into the hardware it makes to
spy or disable communications. Huawei says those accusations are
groundless.
Write to Stu Woo at Stu.Woo@wsj.com
(END) Dow Jones Newswires
June 12, 2019 02:37 ET (06:37 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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