Analysts warn that supply chain constraints could dampen sale of $2,800 tri-foldable Mate XT from Huawei, Reuters news report said.
The price of Huawei’s Mate XT will also be a challenge for smartphone buyers in China and other telecom markets. Huawei’s Mate XT is priced more than twice the iPhone 16 Pro Max.
In China, Apple’s iPhone 16 Pro Max and Huawei’s Mate XT will be available for purchase from Friday. Media reports suggested that poor demand for iPhone 16 Pro Max is not encouraging sign for the US-based Apple too.
Huawei’s Mate XT
The tri-foldable smartphone has generated over 6.5 million pre-orders, outpacing the global foldable smartphone market, where just 3.9 million units were shipped in Q2 2024, according to IDC.
Despite the pre-order rush, supply chain bottlenecks may prevent many phone users from getting their hands on the innovative device.
Production yield issues, particularly with key components like the display panel, cover glass, and intricate hinges, are causing concerns. Huawei’s initial production run is estimated to yield only 500,000 units, far short of pre-order demand. High production costs and difficulties across the supply chain are exacerbating the challenges.
Huawei may be able to produce 500,000 units initially, Lori Chang, senior analyst with Isaiah Research, said.
Lori Chang 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 at IDC.
However, some analysts believe this scarcity could fuel even more demand for the Mate XT, creating a sense of exclusivity and enhancing Huawei’s brand image.
“There will be challenges to meet the number of pre-orders now,” said Will Wong, a senior researcher with consultancy IDC.
While Huawei’s innovation and perseverance are on display with the Mate XT, supply chain constraints could undermine its potential, underscoring the complexity of high-end manufacturing in the current geopolitical landscape.
Huawei has sold 2.2 million units of Mate X5, its bi-folding phone, which retails for 11,500 yuan ($1,630), in total as of the second quarter.
Amber Liu, analyst of research firm Canalys, says Huawei’s Mate XT and Mate X5 differ in value proposition, specifications and price.
“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,” Amber Liu said.
Huawei is spending billions in innovation. For instance, the Mate XT, boasting a locally-made chipset, signifies Huawei’s resilience amid U.S. sanctions, reinforcing its competition with Apple in the Chinese market.
Mate XT is equipped with the same Kirin 9010 5G processor it used for the Pura 70 smartphone series it launched in April.
