Huawei Technologies has made aggressive price cuts on a range of high-end devices, including smartphones, foldable phones, tablets, headphones, and smartwatches. The reductions, announced via the company’s official Weibo account on Sunday, aim to capture greater market share in China’s competitive premium electronics segment.
The discounts were part of a “Super Brand Day” promotion on JD.com, which ran from Saturday evening to midnight Sunday. This campaign marked one of the most substantial pricing adjustments by Huawei, with reductions reaching up to 3,000 yuan ($411).
Flagship Price Reductions
Among the most notable price cuts is the Pura 70 Ultra, a flagship smartphone launched in April. The 1-terabyte model now costs 8,999 yuan ($1,233), down 18% from its original 10,999 yuan. The 512-gigabyte version saw an even sharper 20% reduction. The Mate X5, a foldable smartphone released in September, also experienced a significant price drop of 2,500 yuan, bringing its starting price to 12,999 yuan.
These reductions follow earlier discounts on the Pura 70 series in July and coincide with the November release of new models, including the Mate 70 series and the foldable Mate X6. The cuts are part of Huawei’s strategy to strengthen its position in a market segment currently dominated by Apple and other local brands.
Gains in Market Share
The price strategy appears to be yielding results. Consultancy Canalys reports that Huawei’s domestic shipments of premium smartphones—priced above $600—rose 34% during the September quarter, boosting the company’s market share in this category to 33%, compared to Apple’s 52%. Analysts expect Huawei to ship over 10 million Mate 70 series units during their lifecycle, despite facing challenges related to processor performance.
Leadership in Foldable Smartphones
Huawei’s performance in the foldable smartphone market has been a standout success. CINNO data shows the company shipped 1.12 million foldable units in the third quarter of 2023—a 97% year-on-year increase—solidifying its position as the top vendor in China with roughly half of the market share. The Mate X5, launched in September, played a significant role in this growth. The company also made headlines with the Mate XT, the world’s first trifold smartphone.
Innovative Technology Amid Challenges
Despite ongoing scrutiny over its chip technology and sanctions that restrict access to advanced manufacturing, Huawei has demonstrated resilience. The company surprised the industry last year by integrating a 7-nanometer chip into its Mate 60 series, showcasing its capability to innovate under pressure.
Huawei’s recent price cuts underscore its determination to stay competitive in China’s high-end electronics market, leveraging affordability and innovation to appeal to consumers while challenging established rivals.
Author’s Opinion
Huawei’s aggressive price cuts reflect a strategic gamble to reclaim dominance in China’s high-end tech market. While the discounts may attract budget-conscious consumers, they also highlight the company’s urgency to counter Apple’s stronghold. The challenge lies in balancing competitive pricing with profitability, especially as Huawei navigates ongoing processor limitations. If executed well, this bold approach could cement its foothold, but the road ahead remains steep.
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