According to The New York Times, the deal collapsed after a group of US lawmakers voiced concerns about a potential deal between Huawei and an American firm to sell products in the states in a letter to the Federal Communications Commission (FCC).
As for why AT&T dropped out of the deal, the reasons were reported to be somewhat controversial.
Huwaei highly publicized their expansion to the United States markets via promotions on their U.S. Facebook Page and their tweets.
AT&T has reportedly backed out of its initial deal with Huawei, but the Mate 10 Pro will still be sold in the United States through a number of online stores.
TechCrunch contacted ZTE and Huawei for comment but we had not heard back from either company at the time of writing. Richard Yu, the CEO of Huawei Consumer Business Group, delivered a keynote Tuesday afternoon and unveiled its new smartphone, the Mate 10, and a luxury smartphone made in collaboration with Porsche Design. "We've proven our quality, we've proven our privacy and security protection".
Huawei is the world's third largest smartphone manufacturer, right behind Apple and Samsung.
"Additional work by the Intelligence Committees on this topic only reinforces concerns regarding Huawei and Chinese espionage", the letter to the FCC reportedly said.
Gal Gadot, the Israeli actress who played the title role in the 2017 Warner Bros. movie "Wonder Woman", is the new celebrity sponsor of Chinese telecommunications company Huawei Technologies Co., Ltd. Ms. Gadot will join Huawei's marketing efforts as the company introduces its Mate10 Pro mobile phone to USA market.
Huawei has been flagged by lawmakers before.
"We have been hindered by unsubstantiated, nonspecific concerns that Huawei poses a security threat", Charles Ding, a Huawei executive, said in congressional testimony the same year.
"Partnering with an innovative brand like Huawei is incredibly exciting for me, and I look forward to playing an integral part of the company's growth in the year ahead", Ms. Gadot said in a statement.