Huawei’s $2,800 tri-fold phone hits stores amid supply concerns

Huawei unveiled the Mate XT to a lot fanfare this month, with govt director Richard Yu saying the corporate had turned “science fiction into actuality” [File]
| Picture Credit score: REUTERS

Huawei and Apple’s newest smartphones go on sale in China on Friday (September 20, 2024) with the Chinese tech company’s much-anticipated $2,800 tri-foldable phone supplied at greater than twice the worth of the iPhone 16 Professional Max.

Nevertheless, analysts warn that offer chain constraints may depart many patrons of Huawei Applied sciences’ Mate XT empty-handed.

The launch of the Mate XT, which analysts say has a locally-made chipset, underscores Huawei’s capacity to navigate U.S. sanctions and solidifies its place towards Apple in China, the place some customers criticised the brand new iPhone 16 for its lack of AI options within the nation.

Huawei unveiled the Mate XT to a lot fanfare this month, with govt director Richard Yu saying the corporate had turned “science fiction into actuality” with the gadget that folds 3 ways like an accordion door.

Pre-orders have surpassed 6.5 million to this point, nearly double the roughly 3.9 million foldable smartphones shipped worldwide within the second quarter of this yr, in accordance with consultancy IDC, though “pre-ordering” doesn’t require customers to place down a deposit.

Whereas the Mate XT exhibits Huawei’s innovation within the premium phase, gross sales could fall in need of its bi-folding predecessor, the Mate X5, which nonetheless retails for 11,500 yuan ($1,630) and has offered 2.2 million items in whole as of the second quarter, mentioned Amber Liu, an analyst with analysis agency Canalys.

Although each are premium foldable flagships of Huawei, Mate XT and Mate X5 differ in worth proposition, specs and value, Liu mentioned.

“It’s difficult for the Mate XT to duplicate the amount of the Mate X5, however Mate XT marks a big breakthrough and evolution in all these facets.”

The Mate XT is provided with the identical Kirin 9010 5G processor it used for the Pura 70 smartphone collection it launched in April, in a smartphone seen as notable for pushing again towards U.S. expertise curbs, mentioned Lori Chang, a senior analyst with Isaiah Analysis.

But with manufacturing yield points nonetheless an issue, along with excessive manufacturing prices throughout its provide chain, Huawei could solely be capable of produce 500,000 items initially, Chang mentioned.

Primarily based on current checks, she mentioned key parts of the Huawei Mate XT, together with the panel, cowl glass, and hinges, could also be dealing with manufacturing yield points.

“There might be challenges to totally meet the variety of pre-orders now,” mentioned Will Wong, a senior researcher with consultancy IDC. “Nonetheless, it isn’t a foul factor because it may create a terrific starvation advertising and marketing impact for the model.”