Huawei’s $2,800 phone launch disappoints amid supply issues – 2024-09-20 05:28

Huawei’s $2,800 phone launch disappoints amid supply issues – 2024-09-20 05:28
Huawei’s $2,800 phone launch disappoints amid supply issues – 2024-09-20 05:28

((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))

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Buyers cannot purchase the Mate XT without pre-ordering or confirmation

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Glass and hinge production constraints slow production, analyst says

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Apple’s new iPhone doesn’t yet have Chinese AI software

(Updates are made throughout the year with details from stores in China) by David Kirton

Huawei and Apple’s latest smartphones went on sale in China on Friday, and many fans of the Chinese tech company were disappointed that its highly anticipated $2,800 three-sided foldable phone was not available to customers there.

At Huawei’s flagship store in Shenzhen, southern China, some who described themselves as Huawei “super fans” said they were upset to learn that only people who had confirmed pre-orders could buy the new Mate XT.

“I have been here since 10pm last night because this tri-fold phone is a first and I am eager to support our country,” said a university student surnamed Ye.

“But it’s very disappointing. They should have made it clear that we couldn’t buy.”

Another enthusiastic consumer, Guo, said he took a day off from his job in the manufacturing industry to queue up starting Thursday night.

“They didn’t specify that there wouldn’t be any phones. That’s disappointing.”

The situation was similar at Huawei’s Wangfujing store in Beijing, where consumers were told that only those with confirmed pre-orders would be able to purchase the highly anticipated phone, which folds in three like an accordion mosquito net.

The disappointment comes as analysts had warned that supply chain constraints could leave many potential buyers of Huawei Technologies’ Mate XT empty-handed.

Huawei did not say how many phones have been produced so far or how many customers will receive the Mate XT on its launch day.

The Mate XT, which is priced more than twice as much as the iPhone 16 Pro Max, was unveiled alongside Apple’s new smartphone earlier this month.

APPLE NEEDS AI PARTNER IN CHINA

The launch of Apple’s new smartphone in China was overshadowed by the fact that the company has yet to announce an AI partner in the country to power the 16, and that Apple Intelligence, its AI software, will only be available in Chinese next year.

Some Apple fans have said the AI ​​challenge is not a problem.

“The lack of AI in iPhones is not a major concern for me as it is more of a gimmick at this point,” said a customer named Shi who upgrades his iPhone every year.

Of Huawei’s new offering, which seeks to extend its lead in the world’s largest smartphone market, Shi said it was too expensive and “not aimed at ordinary customers.”

The launch of the Mate XT, which analysts believe will feature a locally made chip, underscores Huawei’s ability to circumvent US sanctions, although the company’s ability to mass produce remains a concern.

Preorders for the Mate XT have topped 6.5 million, nearly double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC. The “pre-order” does not require consumers to make a deposit.

According to recent checks, key components of the Huawei Mate XT, including the panel, cover glass and hinges, may be facing production yield issues, said Lori Chang, principal analyst at Isaiah Research.

Although the Mate XT shows Huawei’s innovation in the high-end segment, sales may lag behind its foldable predecessor, the Mate X5, which still retails for 11,500 yuan ($1,630) and sold 2.2 million units in total in the second quarter, said Amber Liu, an analyst at research firm Canalys.

Although they are both Huawei’s premium foldable flagships, the Mate XT and Mate X5 differ in their value proposition, specifications and price, Liu said.

“It’s hard for the Mate XT to replicate the volume of the Mate X5, but the Mate XT marks a significant breakthrough and evolution in all these aspects.”

($1 = 7.0625 Chinese yuan renminbi)

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