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ZTE Is No Longer Making Phones

Well, that didn't accept long. Less than a month since ZTE was hitting with a ban from the U.S. authorities, the Shenzhen, China-based telecommunications firm has but confirmed information technology has ceased "major operating activities."

The ZTE Blade V9 and Blade V9 Vita, two of the company's newest budget phones expected to debut in the U.S. later this year, may now never see release. — The ZTE Bract V9 and Bract V9 Vita, two of the company's newest budget phones expected to debut in the U.S. later this year, may now never see release.

ZTE issued the proclamation to the Hong Kong Stock Substitution today (May ix), attributing the shutdown to the Denial Order issued by U.Southward. lawmakers in Apr. For now, the visitor's products remain on store shelves around the world, though according to the Nikkei Asian Review past manner of Quartz, some carriers in ZTE'southward home nation are no longer offering them.

A visit to ZTE'south global site for devices redirects users to the corporate portal, although at the time of writing the U.S. site is even so functioning normally, with links to buy phones through carrier partners.

MORE: Moto Now Owns the Budget Phone Market — And That'southward a Problem

While ZTE has evidently halted production for the fourth dimension existence, the company is actively talking to the U.Due south. government to "facilitate the modification or reversal" of the ban, according to the statement. ZTE says information technology is nevertheless financially stable and will go along to uphold its commercial obligations in the meantime.

Today's news is the latest in a saga dating back to March 2017, when ZTE was discovered to have been illegally exporting products containing U.S.-sourced components to Iran and North korea. The telecom giant was forced to pay more than $800 1000000 in penalties for that transgression, and was directed to rebuke all personnel responsible as part of its plea deal.

That brings to concluding month, when a U.South. Department of Commerce investigation institute that ZTE retained all of those employees and paid them bonuses. In response, the U.Southward. regime served the company with a ban, forbidding it to use any U.S.-sourced technology in its products for vii years.

ZTE responded by calling the ban unfair, saying information technology was delivered "before the completion of the investigation of facts." The company added that the "Denial Order volition not simply severely affect the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of U.S. companies."

ZTE, which uses Qualcomm processors in many of its phones and exclusively employs Google's Android operating system and apps, indeed relies on U.S. companies to a significant degree. Sales through U.Southward. prepaid cellular carriers, such every bit T-Mobile and Boost Mobile, are also responsible for a major portion of its business organization. Spokespeople from both networks declined to comment on today'southward annunciation when we reached out. Tom'south Guide has also contacted ZTE, and volition written report back equally soon every bit we hear anything.

Photo Credit: Shaun Lucas/Tom'south Guide

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Adam Ismail is a staff writer at Jalopnik and previously worked on Tom's Guide covering smartphones, motorcar tech and gaming. His honey for all things mobile began with the original Motorola Droid; since then he's endemic a variety of Android and iOS-powered handsets, refusing to stay loyal to one platform. His piece of work has as well appeared on Digital Trends and GTPlanet. When he's non piddling with the latest devices, he'due south at an indie popular show, recording a podcast or playing Sega Dreamcast.