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)