Huawei's $2,800 Tri-Fold Phone Launch Sparks Frustration Amid Supply Shortages

Huawei 'super fans' fuming as left empty handed by $2,800 phone launch

"I've been here since 10 p.m. last night because this tri-folding phone is a first and I'm excited to support our country," said a university student surnamed Ye. "But this is very disappointing. They should have made it clear we can't buy." It was a similar story at the Huawei Wangfujing store in Beijing, where access to the much-hyped Mate XT - which folds three ways like an accordion screen door - was restricted to those whose pre-orders had been confirmed. Reuters saw around 30 people queuing outside the Huawei store in Beijing and a similar number in Shenzhen. Around 100 were seen queuing outside one of Apple's main stores in Beijing. Rui, who got to try the Mate XT in Shenzhen, said: "I wanted to see what the fuss is about, but it's a bit big, not very practical really." Analysts had warned that supply chain constraints could leave potential buyers of the Mate XT empty-handed and others questioned its high cost amid a sluggish economy. While Huawei executive director Richard Yu said at Mate XT's unveiling this month the company had turned "science fiction into reality", owning one still remains a fantasy for many. At Huawei's flagship store in Shanghai, Yu said that sales were "better than expected", without providing details. The phone was sold out in "seconds" and Huawei was working to expand capacity, he added. Pre-orders for the Mate XT have surpassed 6.5 million, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC. "Pre-ordering" does not require consumers to put down a deposit. Huawei did not say how many phones had been produced so far or how many customers would receive the Mate XT on launch day. Apple did not respond to a request for comment on how many new iPhones were available for sale in China on Friday. On the Alibaba-owned Xianyu platform, there were around 4,760 listings for the new Huawei phone - for both sale and pre-orders - as of Friday afternoon. The average price for phones on the platform was 50,000 yuan ($7,089). In the Huaqiangbei electronics market in Shenzhen, a phone stall vendor said she was selling the most expensive version of the Mate XT - with the highest memory - for 150,000 yuan ($21,290), compared to the store price of 23,999 yuan, while she was offering the $2,800 model for more than $4,000. Asked if she had sold any, she replied: "A few people have asked, but it's far too expensive." Huawei is exploring launching the phone in overseas markets in the first quarter of next year, a person with knowledge of the matter said. While Apple for years enjoyed strong demand in China, where new iPhone launches once sparked a frenzy, its sales have dwindled and its quarterly ranking in the world's No. 2 economy has now dropped from third to sixth place. Apple's new smartphone launch has been overshadowed by the fact that it has yet to announce an AI partner in China to power the 16s, and Apple Intelligence, its AI software, will only be available in Chinese next year. Some Apple fans said the AI challenge was not an issue. "The lack of AI in iPhones is not currently a major concern for me, as it's more of a gimmick at this stage," said a customer surnamed Shi who upgrades his iPhone annually. Speaking about the new offering by Huawei, Shi said it was too expensive and "not for ordinary customers". Huawei has received significant patriotic support in China with fans impressed at how the company has managed to overcome years of export controls by the United States that initially crippled its smartphone business. "Chinese people need to support (Huawei). Our Huawei phones currently lag behind in terms of technology and chips, but it's this gap that calls for our support," said Jiang, a 60-year-old business owner in Beijing. The launch of the Mate XT, which analysts say has a locally-made chipset, underscores Huawei's ability to navigate U.S. sanctions although the company's ability to mass-produce remains a significant concern. Based on 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, a senior analyst with Isaiah Research. (Reporting by David Kirton in Shenzhen, additional reporting by Liam Mo and Josh Arslan in Beijing and Shanghai newsroom; writing by Anne Marie Roantree, Editing by Sonali Paul, Lincoln Feast, Michael Perry and Alexander Smith)

Huawei angers walk-in shoppers seeking $2.8K phone: 'Should have made...

Huawei and Apple's latest smartphones went on sale in China on Friday, with many fans of the Chinese company disappointed that its much-anticipated $2,800 model - more than twice the price of the iPhone 16 Pro Max - was not available for walk-in customers. At Huawei's flagship shop in the southern Chinese city of Shenzhen, some who described themselves as "super fans" were annoyed after being told only those whose pre-orders had been confirmed could buy the tri-foldable Mate XT. "I've been here since 10 p.m. last night because this tri-folding phone is a first and I'm excited to support our country," said a university student surnamed Ye. "But this is very disappointing. They should have made it clear we can't buy." It was a similar story at the Huawei Wangfujing store in Beijing, where access to the much-hyped Mate XT - which folds three ways like an accordion screen door - was restricted to those whose pre-orders had been confirmed. Reuters saw around 30 people queuing outside the Huawei store in Beijing and a similar number in Shenzhen. Around 100 were seen queuing outside one of Apple's main stores in Beijing. Rui, who got to try the Mate XT in Shenzhen, said: "I wanted to see what the fuss is about, but it's a bit big, not very practical really." Analysts had warned that supply chain constraints could leave potential buyers of the Mate XT empty-handed and others questioned its high cost amid a sluggish economy. While Huawei executive director Richard Yu said at Mate XT's unveiling this month the company had turned "science fiction into reality," owning one still remains a fantasy for many. At Huawei's flagship store in Shanghai, Yu said that sales were "better than expected," without providing details. The phone was sold out in "seconds" and Huawei was working to expand capacity, he added. Pre-orders for the Mate XT have surpassed 6.5 million, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC. "Pre-ordering" does not require consumers to put down a deposit. Huawei did not say how many phones had been produced so far or how many customers would receive the Mate XT on launch day. Apple did not respond to a request for comment on how many new iPhones were available for sale in China on Friday. On the Alibaba-owned Xianyu platform, there were around 4,760 listings for the new Huawei phone - for both sale and pre-orders - as of Friday afternoon. The average price for phones on the platform was 50,000 yuan ($7,089). In the Huaqiangbei electronics market in Shenzhen, a phone stall vendor said she was selling the most expensive version of the Mate XT - with the highest memory - for 150,000 yuan ($21,290), compared to the store price of 23,999 yuan, while she was offering the $2,800 model for more than $4,000. Asked if she had sold any, she replied: "A few people have asked, but it's far too expensive." Huawei is exploring launching the phone in overseas markets in the first quarter of next year, a person with knowledge of the matter said. While Apple for years enjoyed strong demand in China, where new iPhone launches once sparked a frenzy, its sales have dwindled and its quarterly ranking in the world's No. 2 economy has now dropped from third to sixth place. Apple's new smartphone launch has been overshadowed by the fact that it has yet to announce an AI partner in China to power the 16s, and Apple Intelligence, its AI software, will only be available in Chinese next year. Some Apple fans said the AI challenge was not an issue. "The lack of AI in iPhones is not currently a major concern for me, as it's more of a gimmick at this stage," said a customer surnamed Shi who upgrades his iPhone annually. Speaking about the new offering by Huawei, Shi said it was too expensive and "not for ordinary customers." Huawei has received significant patriotic support in China with fans impressed at how the company has managed to overcome years of export controls by the United States that initially crippled its smartphone business. "Chinese people need to support (Huawei). Our Huawei phones currently lag behind in terms of technology and chips, but it's this gap that calls for our support," said Jiang, a 60-year-old business owner in Beijing. The launch of the Mate XT, which analysts say has a locally-made chipset, underscores Huawei's ability to navigate US sanctions although the company's ability to mass-produce remains a significant concern. Based on 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, a senior analyst with Isaiah Research.

Huawei 'super fans' annoyed at lack of supply as $2,800 phone hits China stores

"I've been here since 10 p.m. last night because this tri-folding phone is a first and I'm excited to support our country," said a university student surnamed Ye. "But this is very disappointing. They should have made it clear we can't buy." It was a similar story at the Huawei Wangfujing store in Beijing, where access to the much-hyped Mate XT - which folds three ways like an accordion screen door - was restricted to those whose pre-orders had been confirmed. Reuters saw around 30 people queuing outside the Huawei store in Beijing and a similar number at its flagship shop in Shenzhen early on Friday. Around 100 people were seen queuing outside one of Apple's main stores in Beijing. A shopper surnamed Rui who got to try out the Mate XT in Shenzhen said: "I wanted to see what the fuss is about, but it's a bit big, not very practical really." The disappointment comes as some analysts had warned that supply chain constraints could leave many potential buyers of Huawei's Mate XT empty-handed and others questioned the high cost of the phone amid a sluggish economy. While Huawei executive director Richard Yu said at Mate XT's unveiling this month the company had turned "science fiction into reality", owning the phone still remains a fantasy for many. Pre-orders for the Mate XT have surpassed 6.5 million, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC. "Pre-ordering" does not require consumers to put down a deposit. Huawei did not say how many phones had been produced so far or how many customers would receive the Mate XT on launch day. Apple did not respond to a request for comment on how many new iPhones were available for sale in China on Friday. In the Huaqiangbei electronics market in Shenzhen, a phone stall vendor said she was selling the most expensive version of the Mate XT - with the highest memory - for 150,000 yuan ($21,290), compared to the store price of 23,999 yuan, while she was offering the $2,800 model for more than $4,000. Asked if she had sold any, she replied: "A few people have asked, but it's far too expensive." While Apple for years enjoyed strong demand in China, where new iPhone launches once sparked a frenzy, its sales have dwindled and the company's quarterly ranking in the world's No. 2 economy has now dropped from third to sixth place. Apple's new smartphone launch in China has been overshadowed by the fact that it has yet to announce an AI partner in the country to power the 16s, and Apple Intelligence, its AI software, will only be available in Chinese next year. Some Apple fans said the AI challenge was not an issue. "The lack of AI in iPhones is not currently a major concern for me, as it's more of a gimmick at this stage," said a customer surnamed Shi who upgrades his iPhone annually. Speaking about the new offering by Huawei, Shi said it was too expensive and "not for ordinary customers". Huawei has received significant patriotic support in China with fans impressed at how the company has managed to overcome years of export controls by the United States that initially crippled its smartphone business. The launch of the Mate XT, which analysts say has a locally-made chipset, underscores Huawei's ability to navigate U.S. sanctions although the company's ability to mass-produce remains a significant concern. Based on recent checks, key components of the Huawei Mate XT, including the panel, cover glass, andhinges, may be facing production yield issues, said Lori Chang, a senior analyst with Isaiah Research. (Reporting by David Kirton in Shenzhen, additional reporting by Liam Mo in Beijing; Editing by Anne Marie Roantree, Sonali Paul and Lincoln Feast.)

Huawei's $2,800 phone launch disappoints amid supply concerns

At Huawei's flagship shop in the southern Chinese city of Shenzhen, some who described themselves as Huawei "super fans" said they were annoyed after being told only those whose pre-orders had been confirmed could buy the new Mate XT. "I've been here since 10 p.m. last night because this tri-folding phone is a first and I'm excited to support our country," said a university student surnamed Ye. "But this is very disappointing. They should have made it clear we can't buy." Another eager consumer surnamed Guo said he took a day off from his job in manufacturing to queue from Thursday night. "They didn't make it clear there'd be no phones. It's disappointing." It was a similar story at the Huawei Wangfujing store in Beijing, where consumers were told only those whose pre-orders had been confirmed could buy the much-anticipated phone, which folds three ways like an accordion screen door. The disappointment comes after 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 had been produced so far or how many customers would receive the Mate XT on launch day. The Mate XT, which is offered at more than twice the price of the iPhone 16 Pro Max, was unveiled at the same time as Apple's new smartphone earlier this month. Apple's new smartphone launch in China has been overshadowed by the fact that it has yet to announce an AI partner in the country to power the 16s, and Apple Intelligence, its AI software, will only be available in Chinese next year. Some Apple fans said the AI challenge was not an issue. "The lack of AI in iPhones is not currently a major concern for me, as it's more of a gimmick at this stage," said a customer surnamed Shi who upgrades his iPhone annually. Speaking about the new offering by Huawei, which is seeking to expand its lead in the world's biggest smartphone market, Shi said it was too expensive and "not for ordinary customers". The launch of the Mate XT, which analysts say has a locally-made chipset, underscores Huawei's ability to navigate U.S. sanctions although the company's ability to mass-produce remains a concern. Pre-orders for the Mate XT have surpassed 6.5 million, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC. "Pre-ordering" does not require consumers to put down a deposit. Based on 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, a senior analyst with Isaiah Research. While the Mate XT shows Huawei's innovation in the premium segment, sales may fall short of its bi-folding predecessor, the Mate X5, which still retails for 11,500 yuan ($1,630) and has sold 2.2 million units in total as of the second quarter, said Amber Liu, an analyst with research firm Canalys. Though both are premium foldable flagships of Huawei, Mate XT and Mate X5 differ in their value proposition, specifications and price, Liu said. "It's challenging for the Mate XT to replicate the volume of the Mate X5, but Mate XT marks a significant breakthrough and evolution in all these aspects." (Reporting by David Kirton in Shenzhen, additional reporting by Liam Mo in Beijing; Editing by Anne Marie Roantree and Sonali Paul)

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

SHENZHEN, China (Reuters) - Huawei and Apple's latest smartphones go on sale in China on Friday, with the Chinese tech company's much-anticipated $2,800 tri-foldable phone offered at more than twice the price 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 has a locally-made chipset, underscores Huawei's ability to navigate U.S. sanctions and solidifies its position against Apple in China, where some consumers criticised the new iPhone 16 for its lack of AI features in the country. Huawei unveiled the Mate XT to much fanfare this month, with executive director Richard Yu saying the company had turned "science fiction into reality" with the device that folds three ways like an accordion door. Pre-orders have surpassed 6.5 million so far, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC, although "pre-ordering" does not require consumers to put down a deposit. While the Mate XT shows Huawei's innovation in the premium segment, sales may fall short of its bi-folding predecessor, the Mate X5, which still retails for 11,500 yuan ($1,630) and has sold 2.2 million units in total as of the second quarter, said Amber Liu, an analyst with research firm Canalys. Though both are premium foldable flagships of Huawei, Mate XT and Mate X5 differ in value proposition, specifications and price, Liu said. "It's challenging for the Mate XT to replicate the volume of the Mate X5, but Mate XT marks a significant breakthrough and evolution in all these aspects." The Mate XT is equipped with the same Kirin 9010 5G processor it used for the Pura 70 smartphone series it launched in April, in a smartphone seen as notable for pushing back against U.S. technology curbs, said Lori Chang, a senior analyst with Isaiah Research. Yet with production yield issues still a problem, in addition to high production costs across its supply chain, Huawei may only be able to produce 500,000 units initially, Chang said. Based on recent checks, she said key components of the Huawei Mate XT, including the panel, cover glass, and hinges, may be facing production yield issues. "There will be challenges to fully meet the number of pre-orders now," said Will Wong, a senior researcher with consultancy IDC. "Nevertheless, it isn't a bad thing as it could create a great hunger marketing effect for the brand." (Reporting by David Kirton; Editing by Anne Marie Roantree and Sonali Paul)

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

Huawei and Apple's latest smartphones go on sale in China on Friday, with the Chinese tech company's much-anticipated $2,800 tri-foldable phone offered at more than twice the price of the iPhone 16 Pro Max.Huawei and Apple's latest smartphones go on sale in China on Friday, with the Chinese tech company's much-anticipated $2,800 tri-foldable phone offered at more than twice the price 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 has a locally-made chipset, underscores Huawei's ability to navigate US sanctions and solidifies its position against Apple in China, where some consumers criticised the new iPhone 16 for its lack of AI features in the country. Huawei unveiled the Mate XT to much fanfare this month, with executive director Richard Yu saying the company had turned "science fiction into reality" with the device that folds three ways like an accordion door. Pre-orders have surpassed 6.5 million so far, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC, although "pre-ordering" does not require consumers to put down a deposit. While the Mate XT shows Huawei's innovation in the premium segment, sales may fall short of its bi-folding predecessor, the Mate X5, which still retails for 11,500 yuan ($1,630) and has sold 2.2 million units in total as of the second quarter, said Amber Liu, an analyst with research firm Canalys. Though both are premium foldable flagships of Huawei, Mate XT and Mate X5 differ in value proposition, specifications and price, Liu said. "It's challenging for the Mate XT to replicate the volume of the Mate X5, but Mate XT marks a significant breakthrough and evolution in all these aspects." The Mate XT is equipped with the same Kirin 9010 5G processor it used for the Pura 70 smartphone series it launched in April, in a smartphone seen as notable for pushing back against U.S. technology curbs, said Lori Chang, a senior analyst with Isaiah Research. Yet with production yield issues still a problem, in addition to high production costs across its supply chain, Huawei may only be able to produce 500,000 units initially, Chang said. Based on recent checks, she said key components of the Huawei Mate XT, including the panel, cover glass, and hinges, may be facing production yield issues. "There will be challenges to fully meet the number of pre-orders now," said Will Wong, a senior researcher with consultancy IDC. "Nevertheless, it isn't a bad thing as it could create a great hunger marketing effect for the brand." ($1 = 7.0625 Chinese yuan renminbi)

Huawei's $2,800 tri-fold phone hits stores as people face supply concerns

Huawei did not say how many phones had been produced so far or how many customers would receive the Mate XT on launch day Huawei and Apple's latest smartphones went on sale in China on Friday, with many fans of the Chinese tech company disappointed that its much-anticipated $2,800 tri-foldable phone was not available for walk-in customers. At Huawei's flagship shop in the southern Chinese city of Shenzhen, some who described themselves as Huawei "super fans" said they were annoyed after being told only those whose pre-orders had been confirmed could buy the new Mate XT. Click here to connect with us on WhatsApp "I've been here since 10 p.m. last night because this tri-folding phone is a first and I'm excited to support our country," said a university student surnamed Ye. "But this is very disappointing. They should have made it clear we can't buy." Another eager consumer surnamed Guo said he took a day off from his job in manufacturing to queue from Thursday night. "They didn't make it clear there are no phones. It's disappointing. More From This Section Quad summit to make announcements on maritime security, technologies Climate, abortion, and gun control: Young women demand change in America Watch: Thai woman survives two-hour struggle with python, rescued by police Nike veteran Elliott Hill to replace John Donahoe as CEO; shares jump Hershey lays off some workers, move affects less than 1% of employees It was a similar story at the Huawei Wangfujing store in Beijing, where consumers were told only those whose pre-orders had been confirmed could buy the much-anticipated phone, which folds three ways like an accordion screen door. The disappointment comes after 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 had been produced so far or how many customers would receive the Mate XT on launch day. The Mate XT, which is offered at more than twice the price of the iPhone 16 Pro Max, was unveiled at the same time as Apple's new smartphone earlier this month. APPLE NEEDS CHINA AI PARTNER Apple's new smartphone launch in China has been overshadowed by the fact that it has yet to announce an AI partner in the country to power the 16s, and Apple Intelligence, its AI software, will only be available in Chinese next year. Some Apple fans said the AI challenge was not an issue. "The lack of AI in iPhones is not currently a major concern for me, as it's more of a gimmick at this stage," said a customer surnamed Shi who upgrades his iPhone annually. Speaking about the new offering by Huawei, which is seeking to expand its lead in the world's biggest smartphone market, Shi said it was too expensive and "not for ordinary customers". The launch of the Mate XT, which analysts say has a locally-made chipset, underscores Huawei's ability to navigate U.S. sanctions although the company's ability to mass-produce remains a concern. Pre-orders for the Mate XT have surpassed 6.5 million, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC. "Pre-ordering" does not require consumers to put down a deposit. Based on 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, a senior analyst with Isaiah Research. While the Mate XT shows Huawei's innovation in the premium segment, sales may fall short of its bi-folding predecessor, the Mate X5, which still retails for 11,500 yuan ($1,630) and has sold 2.2 million units in total as of the second quarter, said Amber Liu, an analyst with research firm Canalys. Though both are premium foldable flagships of Huawei, Mate XT and Mate X5 differ in their value proposition, specifications and price, Liu said. "It's challenging for the Mate XT to replicate the volume of the Mate X5, but Mate XT marks a significant breakthrough and evolution in all these aspects." Also Read Tech wrap Sep 11: Sony PS5 Pro, Sonos Ace, JioPhone Prima 2, HMD 110, more Huawei unveils tri-fold smartphone, raising competition with Apple in China Huawei's tri-foldable phone stirs Chinese pride but $2,800 price tag panned China's Huawei debuts tri-fold design smartphone in Mate line: Take a look Apple's AI gap in new iPhones hits China users as Huawei threat looms

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

SHENZHEN, China: Huawei and Apple's latest smartphones go on sale in China on Friday, with the Chinese tech company's much-anticipated $2,800 tri-foldable phone offered at more than twice the price 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 has a locally-made chipset, underscores Huawei's ability to navigate U.S. sanctions and solidifies its position against Apple in China, where some consumers criticised the new iPhone 16 for its lack of AI features in the country. Huawei unveiled the Mate XT to much fanfare this month, with executive director Richard Yu saying the company had turned "science fiction into reality" with the device that folds three ways like an accordion door. Pre-orders have surpassed 6.5 million so far, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC, although "pre-ordering" does not require consumers to put down a deposit. While the Mate XT shows Huawei's innovation in the premium segment, sales may fall short of its bi-folding predecessor, the Mate X5, which still retails for 11,500 yuan ($1,630) and has sold 2.2 million units in total as of the second quarter, said Amber Liu, an analyst with research firm Canalys. Though both are premium foldable flagships of Huawei, Mate XT and Mate X5 differ in value proposition, specifications and price, Liu said. "It's challenging for the Mate XT to replicate the volume of the Mate X5, but Mate XT marks a significant breakthrough and evolution in all these aspects." The Mate XT is equipped with the same Kirin 9010 5G processor it used for the Pura 70 smartphone series it launched in April, in a smartphone seen as notable for pushing back against U.S. technology curbs, said Lori Chang, a senior analyst with Isaiah Research. Yet with production yield issues still a problem, in addition to high production costs across its supply chain, Huawei may only be able to produce 500,000 units initially, Chang said. Based on recent checks, she said key components of the Huawei Mate XT, including the panel, cover glass, and hinges, may be facing production yield issues. "There will be challenges to fully meet the number of pre-orders now," said Will Wong, a senior researcher with consultancy IDC. "Nevertheless, it isn't a bad thing as it could create a great hunger marketing effect for the brand." ($1 = 7.0625 Chinese yuan renminbi) (Reporting by David Kirton; Editing by Anne Marie Roantree and Sonali Paul) Reuters

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

Huawei and Apple's latest smartphones go on sale in China on Friday (September 20, 2024) with the Chinese tech company's much-anticipated $2,800 tri-foldable phone offered at more than twice the price 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 has a locally-made chipset, underscores Huawei's ability to navigate U.S. sanctions and solidifies its position against Apple in China, where some consumers criticised the new iPhone 16 for its lack of AI features in the country. Huawei unveiled the Mate XT to much fanfare this month, with executive director Richard Yu saying the company had turned "science fiction into reality" with the device that folds three ways like an accordion door. Pre-orders have surpassed 6.5 million so far, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC, although "pre-ordering" does not require consumers to put down a deposit. While the Mate XT shows Huawei's innovation in the premium segment, sales may fall short of its bi-folding predecessor, the Mate X5, which still retails for 11,500 yuan ($1,630) and has sold 2.2 million units in total as of the second quarter, said Amber Liu, an analyst with research firm Canalys. iPhone 16 unveiled in Russia as retailers skirt Apple's export ban Though both are premium foldable flagships of Huawei, Mate XT and Mate X5 differ in value proposition, specifications and price, Liu said. "It's challenging for the Mate XT to replicate the volume of the Mate X5, but Mate XT marks a significant breakthrough and evolution in all these aspects." The Mate XT is equipped with the same Kirin 9010 5G processor it used for the Pura 70 smartphone series it launched in April, in a smartphone seen as notable for pushing back against U.S. technology curbs, said Lori Chang, a senior analyst with Isaiah Research. Yet with production yield issues still a problem, in addition to high production costs across its supply chain, Huawei may only be able to produce 500,000 units initially, Chang said. Based on recent checks, she said key components of the Huawei Mate XT, including the panel, cover glass, and hinges, may be facing production yield issues. "There will be challenges to fully meet the number of pre-orders now," said Will Wong, a senior researcher with consultancy IDC. "Nevertheless, it isn't a bad thing as it could create a great hunger marketing effect for the brand." Published - September 20, 2024 09:17 am IST Read Comments

Huawei's trifold phone is proving popular among Apple iPhone fans in Beijing

BEIJING -- Many of Apple's affluent iPhone users in China are just as interested in Huawei's pricier trifold phone, CNBC found during spot checks at stores Friday, the day the iPhone 16 and Mate XT launched in the country. Out of 10 people CNBC talked to on Friday, eight said they are interested in both the new Huawei and Apple phones. CNBC talked to five individuals at each company's store during a workday morning. Chinese telecommunications giant Huawei has sought to rebuild its smartphone business after U.S. sanctions in 2019. Huawei ranked fourth by China smartphone market share in the second quarter, according to Canalys. U.S.-based Apple dropped out of the top five, giving domestic players the top five spots for the first time, the data showed. The iPhone 16 Pro Max starts at $1,199, and the iPhone 16 at $799. Huawei's trifold Mate XT starts at the equivalent of more than $2,800. The price gap was even more apparent on online platforms selling secondhand goods. The Huawei Mate XT was selling for 50,000 yuan to 60,000 yuan ($7,100 to $8,520) on secondhand shopping platform Xianyu as of 1 p.m. Friday afternoon (1 a.m. ET). The Apple iPhone 16 Pro Max was selling for 10,500 yuan to 16,300 yuan, the site showed. Earlier in the day, the listed resale Mate XT price was 19,000 yuan, while the Apple iPhone 16 Pro Max was selling for 9,999 yuan, the site showed. People in Beijing lined up as early as 5:30 a.m. to get the new iPhone when doors opened at 8 a.m. But there were no lines outside Huawei stores in Beijing and Hefei, a smaller city west of Shanghai. The Chinese company started delivering the new phones at 10:08 a.m. to people who had reserved the trifold device. During the 1 hour and 20 minutes that CNBC was at the Huawei store, a couple dozen people went to the second floor to an area reserved for Mate XT buyers. It was not clear if all of them purchased the device. Many were people buying for resale purposes. Huawei's website on Friday showed it had halted sales, and planned to resume them at 10:08 a.m. on Saturday. The page said the company planned to complete deliveries by Sept. 30. The first person CNBC talked to at the Huawei store arrived at 10 a.m. just to try out the trifold phone. The individual, surnamed Yang, declined to share his first name due to concerns about speaking with foreign media. He said if he buys the trifold Mate XT, he plans to try it out for a few days before deciding whether to keep it, give it to a friend, or sell it. Yang expected the device could sell for 2,000 yuan more than the list price. Yang also said he uses an iPhone, and was interested in trying Huawei's new trifold features because Apple wasn't offering much that he felt was new. Even the first person in line at the Apple store, Wang, said he also wanted to get the Huawei trifold phone, but hadn't gotten a text message yet saying his device was ready to pick up. He said he bought the iPhone 16 because he heard its battery lasted longer, but was willing to wait for the iPhone 17 for any artificial intelligence features.

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

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 has a locally-made chipset, underscores Huawei's ability to navigate U.S. sanctions and solidifies its position against Apple in China, where some consumers criticised the new iPhone 16 for its lack of AI features in the country. Huawei unveiled the Mate XT to much fanfare this month, with executive director Richard Yu saying the company had turned "science fiction into reality" with the device that folds three ways like an accordion door. Pre-orders have surpassed 6.5 million so far, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC, although "pre-ordering" does not require consumers to put down a deposit. While the Mate XT shows Huawei's innovation in the premium segment, sales may fall short of its bi-folding predecessor, the Mate X5, which still retails for 11,500 yuan ($1,630) and has sold 2.2 million units in total as of the second quarter, said Amber Liu, an analyst with research firm Canalys. Though both are premium foldable flagships of Huawei, Mate XT and Mate X5 differ in value proposition, specifications and price, Liu said. "It's challenging for the Mate XT to replicate the volume of the Mate X5, but Mate XT marks a significant breakthrough and evolution in all these aspects." The Mate XT is equipped with the same Kirin 9010 5G processor it used for the Pura 70 smartphone series it launched in April, in a smartphone seen as notable for pushing back against U.S. technology curbs, said Lori Chang, a senior analyst with Isaiah Research. Yet with production yield issues still a problem, in addition to high production costs across its supply chain, Huawei may only be able to produce 500,000 units initially, Chang said. Based on recent checks, she said key components of the Huawei Mate XT, including the panel, cover glass, and hinges, may be facing production yield issues. "There will be challenges to fully meet the number of pre-orders now," said Will Wong, a senior researcher with consultancy IDC. "Nevertheless, it isn't a bad thing as it could create a great hunger marketing effect for the brand." (Reporting by David Kirton; Editing by Anne Marie Roantree and Sonali Paul)

Apple and Huawei's newest devices are going head-to-head in China. Yet both could struggle in the world's largest smartphone market

Both phones go on sale Friday. But amid the hype, both brands face significant challenges in the world's largest smartphone market. There were over 6.5 million pre-orders of the Huawei Mate XT, the company's tri-fold phone, since its announcement. (Pre-orders don't require a deposit). But production hiccups could limit the number of phones actually sold. Ninety percent of the Mate XT's suppliers are based in mainland China, according to an investigation from Isaiah Research, a tech consulting firm. These suppliers provide components like the display panel, cover glass, the battery, and the processor. Yet some of these suppliers may not be able to produce these parts at the scale needed. There are "yield issues" of key components like the panel, hinges, and cover glass, says Lori Chang, a senior research analyst at Isaiah Research. "Main suppliers have reported that production volume remains below 500,000 units with no additional orders placed despite strong pre-order numbers," Chang says, which means Huawei could struggle to fulfill all 6.5 million pre-orders by the end of the year. Huawei did not immediately respond to a request for comment. Huawei's Mate XT uses the Kirin 9010 5G processor, the same as its Pura 70 series phone launched in April, Chang says. Huawei's most recent models feature locally-made advanced processors, despite U.S. sanctions barring chip sales to the Chinese tech company. Huawei's Mate 60 Pro, released in late August was the first model to feature a domestically produced advanced chip, the Kirin 9000s; analysts at the time speculated that Huawei and its suppliers were relying on older chipmaking technologies that may not be as efficient at scale. Will Wong, senior research manager at IDC's Asia-Pacific client devices group, says that production issues are "not a surprise." "It's not only because of the trade ban, but also because the product is at the forefront of foldable technology," he says. "There will be challenges to fully meet the number of pre-orders." Yet while Huawei may struggle with a lack of supply, Apple's challenge could be a lack of demand. In China, Apple's iPhone 16 will go on sale without its highly-touted AI features. Instead, users will need to download them later as an update. Also, a Chinese-language version of Apple's AI features won't come until next year. The U.S. smartphone giant is also losing market share in China, thanks to the rise of domestic brands like Huawei. Independent research from firms like Counterpoint Research and IDC report that brands like Xiaomi, Huawei and Honor are eating up Apple's market share in China; the U.S. company fell out of the top 5 phone brands in China in the second quarter of the year, according to IDC research. (In May, Apple CEO Tim Cook claimed on an earnings call that the iPhone 15 and 15 Pro Max were the two best-selling phones in urban China, without providing details) Apple's Greater China revenue, which combines sales in mainland China, Hong Kong, and Taiwan, was $31.1 billion for the first six months of the year, a 7.4% year-on-year drop. Even before the iPhone 16 went on sale, the South China Morning Post reported that online retailers like Pinduoduo and Alibaba were cutting the price of the newest model by as much as 11%, suggesting that these retailers could be anticipating softer demand.

Apple's showdown with its Chinese rival Huawei is here as both companies launch new smartphones on the same day

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Hours after Apple unveiled its iPhone 16 models earlier this month, Huawei announced the Mate XT would drop on the same day. Huawei said it secured over 2.7 million preorders for the trifold smartphone in the first few hours, and the $2,800 device was listed at three times its retail price on resale sites. Ahead of launch day, the company said preorders crossed 6.5 million units. For Americans, there won't be the temptation to choose the Mate XT over the iPhone 16, as the Chinese smartphones haven't been available directly from the company in the US since being placed on the "Entity List" in 2019. But in China, Huawei started delivering its new phones to customers who preordered them shortly after 10 a.m. local time on Friday, CNBC reported from Beijing. While people lined up at Apple stores as early as 5:30 a.m. to be first in line for the new iPhone when stores opened at 8 a.m., Huawei stores in Beijing and Hefei didn't have lines, the news outlet reported. Reuters reported seeing about 30 people lining up at the Huawei stores in Shenzhen and Beijing, compared with Apple's 100 prospective customers lined up outside a Beijing store. The disparity could be partly due to how Huawei distributed the first batch of Mate XT sales. Some superfans of the company told Reuters they were disappointed to find out that they couldn't walk in to purchase the trifold device, which was apparently reserved for people who had preordered it. Huawei did not immediately respond to a request for comment made outside local business hours. To make the competition between the companies even more intense, both brands are touting their own artificial-intelligence features. The Mate XT includes generative-AI and satellite-communication features. Meanwhile, Apple has made splashy announcements of its own gen-AI offerings, collectively called Apple Intelligence, but those features won't start rolling out to the iPhone 16 until October. The phones are otherwise strikingly different in appearance and price, with Huawei benefiting on social media from its eye-catching trifold design, which allows the phone to expand out into a tablet-sized device with a 10.2-inch screen. It's one step further than previous foldable-phone designs, and the Mate XT's $2,800 price tag means customers will have to pay a hefty premium to be among the first to own the phone. Apple's iPhone 16 line starts at $800. Apple's hardware design is more iterative by comparison, but there are some notable changes. The iPhone 16 offers a new "camera control" button and brings the "action" button previously found only on the iPhone 15 Pro models to the entry-level iPhone 16 as well. While Apple is betting that subtler tweaks to its form factor and bigger changes to its software will persuade buyers to upgrade to the iPhone 16 line, there are signs we could see some different designs in the coming years. Apple, The Information reported in February, has been exploring prototypes for two folding phones after chewing on the idea for years. The tech giant, which typically prefers to wait to launch into a new category until it feels ready to dominate it, would be late to the game as competitors have already produced similar products, including US-available Samsung and Google Pixel devices. In the meantime, the company is looking to launch a noticeably thinner iPhone Air as soon as next year, Bloomberg reported last month. In 2023, Apple became the best-selling smartphone in China, a monumental achievement that came years after the US slapped sanctions on Huawei in 2019, which locked the Chinese company out of access to the newest semiconductors. In response, Huawei designed its own processors to use in a line of smartphones released in April. But Apple's victory was short-lived as the company's iPhone sales in China fell an estimated 24% in the first six weeks of 2024, according to data from the market-research firm Counterpoint Research. Vivo became the new top smartphone seller in the region. Since then, Apple has faced questions from Wall Street during its earnings calls about the company's smartphone sales in China. Vivo maintained its lead in China in the second quarter, followed by Apple and Huawei, Counterpoint Research found. Apple saw an estimated 5.7% market-share decline year over year in the quarter, while Huawei's sales jumped nearly 45% over the same period, the firm's data showed. Some on Wall Street, such as the analyst firm Wedbush Securities, feel that Apple could be turning a corner in China with the iPhone 16. The firm predicted earlier this month that the iPhone 16 will be Apple's "most successful iPhone unit launch in its history as Apple Intelligence will be the launching pad for the consumer AI Revolution globally." But with fierce launch-day competition in China, you can bet Wall Street will be looking to see whether Huawei complicates the Apple comeback story.

Resellers are hiking prices on Huawei's 'trifold' smartphone before it's even out

Huawei is preparing to release its new 'trifold' smartphone on Friday -- the same day as Apple's (AAPL) latest iPhone comes out -- but it's already being listed in China for up to three times its price. The Chinese tech giant's new Mate XT smartphone starts at 19,999 yuan, or $2,800, but scalpers are listing the smartphone on resale sites for between 60,000 and 70,000 yuan, or about $8,500 to $9,900, amid high demand, Lin Shen, a second-hand smartphone dealer, told the South China Morning Post (BABA). "The prices at Huaqiangbei [, a Shenzhen-based electronics wholesale marketplace,] are still very unstable," Lin told the SCMP. "Most of the interest is from scalpers who are looking to resell [the Mate XT] and make a profit from the price difference." Huawei did not immediately respond to a request for comment. Huawei's trifold smartphone received over 3 million preorders before its debut just hours after Apple's iPhone 16 unveiling. Pre-orders for the smartphone started on September 7, and did not require a deposit. And as Apple touted artificial intelligence features for its upcoming iPhone models, Huawei said its Mate XT, which uses the company's Kylin chip, features an AI-powered assistant for text summarization, translation, and editing. Apple analyst Ming-Chi Kuo wrote in a note that a recent supply chain survey shows 2024 shipments for the tri-fold smartphone have been revised up to 1 million units from 500,000, but noted previous instances of a drop in demand for Huawei's flagship products after release. Since releasing its Mate 60 Pro smartphone series last August, Huawei has outpaced Apple in the Chinese smartphone market. In April, the company reported a rise in profit for the fourth consecutive quarter, also showing resilience against U.S. sanctions aimed at curbing China's advanced chip efforts. Meanwhile, Apple's iPhone sales fell 19% over the same period -- its worst performance in China since the start of the COVID-19 pandemic in 2020. Apple's share of China's smartphone market also fell year-over-year in the first quarter of 2024 from 19.7% to 15.7%. The company has had to cut prices on some iPhone models in the Chinese market as competition grows with Huawei and other homegrown smartphone-makers. Meanwhile, Chinese online retailers are cutting prices of the iPhone 16 ahead of its official release in the country, as they wait for Apple's AI features to roll out, the SCMP reported.