Since the Huawei-US saga began, the focus has been on its mobile phone business but the ban also affects its other businesses with ties to US companies. The attention has now been turned to is its PC business which has suffered a strong blow.
A new report says the Chinese giant has asked its supply chain partners to halt deliveries. It has also asked work on new projects to be suspended. This move affects Huawei’s own MateBook PCs as well as that of its Honor sub-brand which are sold under the MagicBook brand.
According to Digitimes, a number of suppliers have received a memo from Huawei to stop supply. There is no time frame for when production and development will resume as Huawei doesn’t have an alternative to Intel and Windows OS (Wintel). Both Intel and Microsoft are US-based companies and are prevented from conducting business with Huawei. AMD, which also powers some of Huawei’s PCs is also an American company.
While Huawei has been able to stock up on chipsets for its mobile phones following the US’s spate with ZTE last year, it has not been able to do so for its Notebook business.
Huawei’s PC business has grown significantly ever since it began a few years ago. Its shipment is expected to reach up to 277.3% but that figure will no longer be attainable following the recent developments. The MateBook X Pro which launched earlier this year set a record of ¥10 million in sales in just 10 minutes on a Chinese e-commerce store.
(Source)
