The buzz surrounding Huawei’s latest addition to its smartphone lineup, the Mate 70, seems to be fading, according to brokerage firm Jefferies. This shift in consumer interest could have implications for Huawei’s overall shipments for the year, potentially benefiting Apple and other Chinese brands in the market.
Jefferies noted a decline in the excitement surrounding the Mate 70 based on online discussions following its recent launch. The brokerage firm had initially projected Huawei to ship 48 million phones this year. However, with the underwhelming performance of the previous Pura 70 model, which only managed to ship 5 million units since its launch in April, Jefferies now sees a downside risk to its estimates.
Here are some key points to consider regarding the Mate 70 and its impact on Huawei’s standing in the smartphone market:
- The Mate 70 is regarded as the most powerful Mate phone to date, yet analysts and consumers alike have expressed concerns about the limited improvements over its predecessor.
- Despite Huawei’s significant achievement in locally producing advanced chips for the Mate 60, the company has faced challenges in enhancing performance and production yield for subsequent models.
- Supply bottlenecks related to chip production are expected for the Mate 70, similar to the issues experienced with the Mate 60.
Toby Zhu, an analyst at Canalys, emphasized that the initial hype surrounding Huawei’s comeback following the Mate 60 launch was natural but that a cooling-off period was to be expected. Zhu predicted a slight growth in Mate 70 sales volume compared to the Mate 60 series, attributing it to sufficient flagship production capacity and the patriotic sentiment surrounding Huawei’s technological advancements.
Despite the recent dip in consumer enthusiasm for the Mate 70, Huawei has shown resilience in the market. Research firm Canalys reported that Huawei ranked as China’s second-largest smartphone vendor in the third quarter of 2024, surpassing 10 million unit deliveries for the fourth consecutive quarter. This marks a significant recovery from the company’s performance in the second quarter of 2022, when it shipped just 4.1 million units.
In conclusion, while Huawei may face challenges with the Mate 70 in terms of consumer reception, the company’s continued innovation and market presence suggest that it remains a formidable player in the smartphone industry. As consumer preferences evolve and competition intensifies, Huawei’s ability to adapt and deliver cutting-edge technology will be crucial in maintaining its market position.
