Huawei made an impressive market entry with its new Mate XT, a foldable smartphone valued at $2,800. In the first week after its release, the Chinese technology company recorded over 5 million pre-orders. This development comes just a few hours after Apple's presentation of the iPhone 16, which is launched in direct competition with the Huawei model.
The Mate XT, equipped for the first time with a foldable display in three segments, was unveiled on Tuesday in Shenzhen. Richard Yu, CEO of Huawei, emphasized the technical challenges the company had overcome in the past five years while developing the device. "We have surpassed the technological boundaries of screens and hinges and turned science fiction into reality," he explained.
While Apple Promotes Its Latest iPhone with Advanced AI Features, Huawei Enjoys a Strategic Advantage in China as Apple's Services Are Restricted on the Mainland. Additionally, the Company Saw a Significant Decline in iPhone Sales in China, Where Revenues Fell by 10 Percent in the First Quarter of 2024.
Despite a significantly higher price of 19,999 Yuan (approximately 2,843 US dollars) for the base model of the Mate XT compared to the iPhone 16 (5,999 Yuan), Huawei recorded strong pre-orders on its website, including for the more expensive model valued at 23,999 Yuan. This could theoretically lead to a revenue of over 13 billion US dollars, although analysts doubt that Huawei has the production capacity to meet such high demand.
The new Mate XT signals Huawei's return to the global market after the company had been cut off from essential semiconductors since 2019 due to US sanctions. These sanctions forced Huawei to temporarily suspend the production of its 5G smartphones and to spin off its Honor brand. With the release of the Mate 60 last year, the company achieved a technological breakthrough by using its own Kirin 9000S chip.
Despite production successes, Huawei continues to face major challenges. In particular, the mass production of the tri-fold screen poses a significant hurdle that, according to Yu, is "very difficult." Analysts such as Martin Yang from Oppenheimer & Co estimate that only a fraction of the over 4 million pre-orders can actually be delivered.
With the Mate XT, Huawei aims to further expand its market share in the foldable smartphone sector, after already surpassing Samsung as the leading provider in this segment in the first quarter of 2024. According to Counterpoint Research, global shipments of foldable smartphones increased by 49 percent in the same period, led by Huawei and other Chinese manufacturers.
