In a significant development, Huawei Technologies, based in China, has introduced a new line of smartphones that has captured global attention due to its potential to circumvent US sanctions, positioning itself as a strong contender to Apple.
The Mate X5, an innovative version of Huawei’s foldable phones, and the high-end Mate 60 Pro+ were two additional smartphones that went on sale on September 9 after the Mate 60 and Mate 60 Pro’s late August unveilings. With a starting price of 5,999 yuan ($817.70), the Mate 60 competes directly with Apple’s iPhone 14 in the Chinese market.
Here are key insights into Huawei’s latest smartphone series, their component suppliers, and their implications for the world’s largest smartphone market:
Capabilities of the Mate 60 Series
Huawei has prominently highlighted the smartphones’ capability to support satellite communications, enabling users to make calls or send messages even in remote areas lacking mobile signals or internet connectivity, such as mountains or at sea.
While the company has not disclosed detailed specifications of the chips used, analysis by TechInsights revealed that the phone is powered by a new Kirin 9000s chip manufactured in China by Semiconductor Manufacturing International Corp (SMIC).
Speed tests conducted by Chinese users on social media suggest that the Mate 60 Pro offers download speeds surpassing those of top-of-the-line 5G phones. Chinese consumers comparing the Mate 60 series to Apple’s latest iPhone 14 have posted reviews indicating comparable specifications in terms of storage and memory.
Furthermore, Huawei’s launch closely precedes Apple’s expected unveiling of the iPhone 15 on September 12.
Suppliers of the Mate 60
Although Huawei has not officially disclosed the suppliers of the Mate 60 series components, TechInsights identified South Korea’s SK Hynix as a provider of DRAM and NAND components in the phone. SK Hynix, which ceased business relations with Huawei following US restrictions in 2019, has stated that it is investigating the matter.
TechInsights also noted that the Mate 60 Pro incorporates a higher proportion of Chinese-made chip components compared to its predecessors. Lists of potential Chinese suppliers have circulated widely online, resulting in surges in the stock prices of companies speculated to be candidates.
Many of these companies already have existing relationships with Huawei, such as Dongguan Chitwing Technology Co. Ltd, a mold manufacturer, whose shares rose by the daily limit of 10 percent in the days following Huawei’s product launch. Visionox Technology, a display maker based in Suzhou, confirmed to Reuters that it is a supplier for the new Mate 60 series.
Huawei Mate 60 Pro
Impact on Apple in the Chinese Smartphone Market
Once the global leader in smartphone sales, Huawei’s market share had steadily declined due to US restrictions on access to crucial chip-making tools needed for advanced handset models. The company was limited to selling small batches of 5G models using stockpiled chips.
In China, the world’s largest smartphone market, Huawei’s market share dropped to 11 percent this year from 27 percent in 2020, partly due to the company’s decision to sell its budget brand, Honor, in a bid to ensure its survival.
Consequently, Apple became the primary producer of premium smartphones in China, with its market share increasing from 11 percent to 19 percent over the same period, according to data from research firm Counterpoint.
Industry analysts speculate that the Mate 60 series might mark Huawei’s resurgence as a formidable rival to Apple, driven by patriotic sentiment as state media and internet users celebrate the launch as a blow against the United States amid escalating tensions between Washington and Beijing.
Ming-Chi Kuo, an analyst with TF International Securities, anticipates that the Mate 60 Pro’s shipments for the second half of the year could reach 5.5 to 6 million units, representing a 20 percent increase from previously projected volumes.
Furthermore, cumulative shipments of the Mate 60 Pro are projected to surpass at least 12 million units within 12 months of its launch, according to Kuo’s estimates.
In summary, Huawei’s latest smartphone series, the Mate 60, has the potential to reshape the Chinese smartphone market and challenge Apple’s dominance, marking a significant milestone in the ongoing competition between these two tech giants.
