Huawei’s $2,800 triple-decker phone hits stores amid supply issues – 2024-09-20 02:33

Huawei’s $2,800 triple-decker phone hits stores amid supply issues – 2024-09-20 02:33
Huawei’s $2,800 triple-decker phone hits stores amid supply issues – 2024-09-20 02:33

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

Huawei and Apple’s latest smartphones will go on sale in China on Friday, with the Chinese tech company’s highly anticipated $2,800 triple-folding phone priced more than twice that of the iPhone 16 Pro Max.

However, analysts warn that supply chain constraints could leave many buyers of Huawei Technologies’ Mate XT empty-handed.

The launch of the Mate XT, which analysts say is powered by a locally made chipset, underscores Huawei’s ability to circumvent U.S. sanctions and strengthens its position against Apple AAPL.O in China, where some consumers have criticized the new iPhone 16 for lacking artificial intelligence features in the country.

Huawei unveiled the Mate XT to much fanfare this month, with chief executive Richard Yu saying the company had turned “science fiction into reality” with the device that folds in three like an accordion door.

Pre-orders have topped 6.5 million so far, nearly double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC, though “pre-ordering” does not require consumers to put down a deposit.

While the Mate XT shows Huawei’s innovation in the high-end segment, sales may lag behind its foldable predecessor, the Mate X5, which still sells 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 terms of value proposition, specifications and pricing, 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.”

The Mate XT features the same Kirin 9010 5G processor used in the Pura 70 series of smartphones launched in April, in a smartphone seen as notable for its resistance to U.S. technology restrictions, said Lori Chang, principal analyst at Isaiah Research.

However, due to production efficiency issues and high production costs in its supply chain, Huawei may only be able to produce 500,000 units initially, Chang said.

Based on recent checks, it said that key components of the Huawei Mate XT, including the panel, cover glass and hinges, may be facing production yield issues.

“It will be difficult to fully satisfy the current number of pre-orders,” said Will Wong, principal researcher at consulting firm IDC. “Nevertheless, this is not a bad thing because it could create a great hunger marketing effect for the brand

($1 = 7.0625 Chinese yuan renminbi)

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