China is the world's largest smartphone market . That means the US is number two, right? But no. That honor belongs to India, with the US in third place. In China, the premium, which includes phones that cost more than $600, is led by Apple. The US company has a 52% share of the high-priced premium market in China, followed by Huawei. The beleaguered Chinese manufacturer holds 33% of the premium phone pie in China, after a 34% increase in domestic sales of high-end phones in the third quarter.
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To compete with Apple in this segment of the Chinese smartphone market, Huawei has been slashing prices on its phones. For example, the 1TB variant of the Pura 70 Ultra, part of the Pura 70 series that launched in April, is eligible for an 18% discount. That brings the phone’s price down from $1,494 to $1,233. The photography-focused version of the phone with 512GB of storage is available at a steeper 20% discount. The Pura 70 series, the successor to the P60, was already discounted to $137 last summer.
The foldable Huawei Mate X5, which was released in September 2023, is now on sale with a 19%, bringing the phone's price down to $1,439. According to research firm CINNO, the Mate X5 has been the most popular foldable since its launch last year. Huawei began dropping smartphone prices after the launch of the new Mate 70 series and the foldable Mate X6 in November.
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The current flagship Mate 70 has not been selling well. The weak sales are said to be due to the Kirin 9020 application processor (AP) that powers the phones. Manufactured by SMIC using the second-generation 7nm process node, the chipset is considered a weaker processor than the silicon used in competing phones like the 3nm A18 and A18 Pro found in the latest iPhone 16 models. Counterpoint Research says the Mate 70 series is still expected to sell over 10 million units during its lifetime.
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Huawei is the most popular foldable phone brand in China, though it faces competition from several foldable models produced by its domestic rivals. CINNO reports that thanks in part to the Mate X5, Huawei shipped 1.12 million foldable units in the third quarter. That’s a whopping 97% year-over-year gain. And speaking of foldables, Huawei shocked the industry by releasing the world’s first triple-fold foldable model last September. The Huawei Mate XT features a 10-inch display and a price tag equivalent to $3,000.
Source: phonearena
