Is Huawei Losing Its Edge? $2,800 Phone Launch Fails to Impress

Huawei's long-overdue Mate XT three-folding smartphone costing US$2,800 on Friday, went for pre-order sales in China.

Prolonged with much enthusiasm, the zealous fans started ordering the devices once they became recently available for online pre-orders. Logistics issues in the supply chain resulted in most of the frustrated buyers leaving the stores empty-handed on the day of its launch.

"I have been here since 10 p.m. last night because this tri-folding phone is the first one, and I am so interested in supporting my country," said a frustrated university student surnamed Ye at Huawei's flagship store in Shenzhen. He further noted, "This is very disappointing. They should have stated that we are not allowed to buy."

Tri-Foldable Mate XT Surpasses Pre-Order Expectations

Mate XT, priced over twice the cost of Apple's iPhone 16 Pro Max, was unveiled with fanfare as a breakthrough in foldable smartphone technology. Pre-orders for the phone stand at over 6.5 million, it is now double the global demand for foldable phones in the second quarter, of 2024, according to IDC.

Production Constraints Slow Mate XT Rollout

Production constraints, especially on glass and hinge components, have slowed its rollout. Already, the phone is selling at a pretty high premium in Huaqiangbei, the electronics hub of Shenzhen, with some even asking up to US$4,000 for the high-end model.

High-End Mate XT Model Sold at a Premium Price

Huawei has received strong patriotic support in China for overcoming U.S. sanctions, but the mass production concern remains critical. Analysts caution that with its limited capacity in key components, it may not meet the tremendous demand.

Huawei Triumphs at The Gates Of U.S. Sanctions

Apple launched the iPhone 16 Pro Max on the same day when its market position had slipped from third to sixth position. The new release suffered due to the lack of an AI partner in the Chinese language. Apple Intelligence is not expected in Chinese language till next year.

Apple iPhone 16 Launch Fails in China

Apple had ambitious plans for the iPhone 16 with great strides to be taken in AI. However, the giant couldn’t back these up as the rollout of Apple Intelligence got delayed in its biggest consumer nations like China.

"The lack of AI in iPhones is not a major concern for me currently," said a Chinese customer, Shi, echoing the significance of Apple's AI gap. He further noted, "It's more of a gimmick at this stage." Read more