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Huawei's $2,800 tri-fold phone hits stores amid supply concerns
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Huawei's $2,800 tri-fold phone hits stores amid supply concerns
Sep 28, 2024 12:20 AM

SHENZHEN, China, Sept 20 (Reuters) - Huawei and Apple's ( AAPL )

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 ( AAPL )

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 ( KNBWF ) 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)

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