Huawei’s latest flagship smartphone, the Mate 70, has sparked less consumer excitement in China compared to its predecessors, according to analysts. This cooling enthusiasm could impact Huawei’s shipment targets for 2024, benefiting competitors like Apple and domestic Chinese brands, brokerage Jefferies noted in a Thursday report.
The Mate 70, launched on Tuesday, has seen lower online engagement compared to the Mate 60, according to Jefferies’ analysis of reviews and commentary. The firm highlighted that the reduced buzz signals possible downside risk to its initial estimate of 48 million Huawei phone shipments for the year. This forecast comes in the wake of slower-than-expected sales for the Pura 70, which has shipped just 5 million units since its April debut.
The Mate 60, which marked Huawei’s triumphant return to the high-end smartphone market last year, has shipped approximately 12 to 13 million units—falling short of Jefferies’ earlier projections of 15 to 16 million. Analysts now predict the Mate 70’s sales volume may lag behind the Mate 60.
Jefferies pointed out, “It seems our Huawei shipment forecast of 48 million this year has downside, which is positive for iPhone and other brands.”
Huawei has positioned the Mate 70 as its most powerful Mate series phone yet. However, analysts and consumers alike have noted only incremental improvements over its predecessor. While the Mate 60 made headlines for integrating an advanced domestically-produced chip—overcoming years of U.S. sanctions—ongoing production challenges have limited Huawei’s ability to deliver significant performance upgrades. These bottlenecks led to shortages of the Mate 60 shortly after its launch, and Jefferies expects similar supply issues for the Mate 70.
Toby Zhu, an analyst at consultancy Canalys, argued that reduced consumer enthusiasm was inevitable. “The hype surrounding Huawei’s initial comeback was bound to subside,” he said. Zhu expressed optimism that the Mate 70’s sales might still edge out the Mate 60, partly due to enhanced production capacity for flagship models.
Huawei’s resurgence has been fueled by patriotic sentiment surrounding its technological breakthroughs, intensifying competition in China’s smartphone market. The company ranked as the country’s second-largest smartphone vendor in Q3 2024, delivering over 10 million units for four consecutive quarters, per Canalys data. This marks a stark improvement from Q2 2022, when it shipped only 4.1 million units.
Despite Huawei’s efforts to cement its comeback, Jefferies’ analysis underscores the challenges the company faces in maintaining momentum amid stiff competition and production hurdles.
The cooling reception for Huawei’s Mate 70 highlights a critical challenge for the company: sustaining consumer enthusiasm in a hyper-competitive market. While the patriotic appeal and technological breakthroughs of previous launches spurred interest, incremental updates alone may not be enough to maintain momentum. To compete with both local and global rivals, Huawei needs to focus on delivering innovation that resonates with consumer demands and addresses ongoing production hurdles. Without significant differentiation, even a loyal base may struggle to justify upgrades, leaving room for competitors like Apple to capture market share.
Featured image courtesy of Mashable ME
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