SHANGHAI, Nov 29 (Reuters) - Huawei is seeing less

consumer excitement in China for its newly launched Mate 70

smartphone, which could impact the Chinese tech giant's overall

shipments for the year to benefit Apple ( AAPL ) and other

Chinese brands, brokerage Jefferies said.

Jefferies said in a note published on Thursday that its

observation of online discussions after the Mate 70 was launched

on Tuesday was that there was "much less enthusiasm", based on

frequency of reviews and online commentary.

It now saw downside risk to an initial estimate it had made

for Huawei to ship 48 million phones this year, as an earlier

product, the Pura 70, had only shipped 5 million units since its

April launch this year, Jefferies said.

The Mate 70's predecessor, the Mate 60 which marked Huawei's

comeback to high-end smartphones when it was rolled out last

year, had shipped 12 million-13 million units to date, below

their initial estimates of 15-16 million.

"We believe Mate 70's ultimate sales volume could be below

that of Mate 60," the analysts said.

"It seems our Huawei shipment forecast of 48 million this

year has downside, which is positive for iPhone and other

brands."

Huawei did not immediately respond to a request for comment.

Huawei touted the Mate 70 as the most powerful Mate phone

but analysts and consumers have said improvements over its

predecessor appear to be limited.

While the Mate 60 made a big splash by revealing that Huawei

was able to overcome years of U.S. sanctions and locally make an

advanced chip, it has found it difficult to make much

improvements in terms of performance and production yield,

Reuters had reported.

This resulted in shortages of the Mate 60 in the first few

months of its launch and Jefferies said it expects supply

bottlenecks related to chip production for the Mate 70 as well.

Toby Zhu, an analyst at consultancy Canalys, said consumer

reaction cooling down to Huawei's new phone was inevitable, as

industry and consumer hype would naturally subside after

Huawei's initial comeback.

On the contrary, he added that he expected Mate 70 sales

volume to show slight growth compared to the Mate 60 series,

partly due to sufficient flagship production capacity.

The patriotic sentiment surrounding Huawei's technological

breakthrough has helped fuel its market recovery and intensified

competition with other players.

Huawei was ranked as China's No.2 smartphone vendor in the

third quarter of 2024, with deliveries exceeding 10 million

units for the fourth straight quarter, according to research

firm Canalys.

This is a significant rebound from the second quarter of

2022, when it shipped just 4.1 million units.