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Huawei Cancels Matebook Launch For U.S. Restrictions

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China's Huawei Technologies Co. canceled the launch of a new laptop in its Matebook series, and might soon exit the laptop business due to the crippling U.S. sanctions, reports said.

The DigiTimes reported, citing sources from the upstream supply chain, that Huawei has recently asked its notebook supply chain partners to suspend deliveries and also halted all its new notebook products. This could imply that the MateBook laptops will not be produced going forward.

Notebookcheck later confirmed the report, citing industry insiders at this year's Computex event. According to Notebookcheck, Huawei has cancelled an order for 16-inch laptop panels that indicates the company is slowly ceasing operations.

The news comes as the Chinese tech giant is effectively barred from doing business with U.S. suppliers after it was placed on the U.S. Entity List by the Trump administration. This means Huawei cannot buy components and technology from U.S. companies without prior approval from the U.S. government.

Major technology companies such as Qualcomm, Broadcom, Intel and Xilinx have all cut ties with Huawei following the U.S. sanctions. In May, Microsoft had removed Huawei laptops and servers from its online store.

Huawei relies on components from U.S. suppliers for its laptop business. The company's Matebook X Pro runs Microsoft's Windows operating system and uses chips produced by Intel.

To offset the impact of the U.S. sanctions, Huawei reportedly stockpiled key components and is working on developing its own operating system for its future smartphones as part of a contingency plan.

Huawei is the world's largest maker of telecom equipment, but it's consumer business is slowly gaining traction as evidenced by its recent rise to the second position among the world's largest smartphone sellers.

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