Is Huawei’s new smartphone a viable alternative to Apple’s?

Because of revolutionary technology included in its smartphones, China’s Huawei Technologies has attracted interest from across the world and may one day challenge Apple in the smartphone market.

The Mate 60 and Mate 60 Pro were first introduced by the firm at the end of August. On Friday, the Mate X5, a new iteration of its foldable phones, and the Mate 60 Pro+ were introduced. Priced at 5,999 yuan ($817.70), the Mate 60 is comparable to Apple’s iPhone 14 in China.

The following are some essential details concerning Huawei’s new smartphones, their suppliers, and what they could imply for the biggest smartphone market in the world:

WHAT CAN BE DONE WITH THE MATE 60 SERIES?

Huawei has mostly highlighted the devices’ capabilities for satellite communications, which enables users to make calls or send messages even in places without internet or cell services, such mountains or the ocean.

The phone is powered by a brand-new Kirin 9000s processor that was manufactured in China by Semiconductor Manufacturing International Corp (SMIC), according to analysis company TechInsights.

The Mate 60 Pro may be able to download data at rates that are faster than the best 5G smartphones, according to speed tests that customers posted on Chinese social media.

Chinese customers who compared the phones to Apple’s most recent iPhone 14, the iPhone 14, have submitted online evaluations stating that they feature similar characteristics, such as storage and memory. Additionally, Huawei’s announcement occurs a few days before Apple is anticipated to release its new iPhone 15 on September 12.

WHO ARE THE SUPPLIERS OF THE MATE 60’S?

Huawei has not publicly identified the component suppliers for the phones, however in addition to SMIC, TechInsights reported finding DRAM and NAND parts from South Korean manufacturer SK Hynix in the device.

Since the United States imposed sanctions on Huawei in 2019, SK Hynix, which said it had ceased doing business with the company, has announced it is looking into the matter.

According to TechInsights, the Mate 60 Pro has more Chinese-made processor components than earlier generations.

Online, lists of potential Chinese suppliers have been extensively disseminated, sending shares of businesses mentioned as prospects skyrocketing.

The majority of them are Huawei’s current suppliers. For example, in the days after Huawei’s introduction, shares of Dongguan Chitwing Technology Co. Ltd, a company that creates molds, increased by the daily maximum of 10%. It did not reply to a request for comment from Reuters.

The new Mate 60 series was supplied by Suzhou-based display manufacturer Visionox Technology, whose shares have increased by 15% since the new handsets were introduced on August 29.

WHAT MIGHT IT IMPLY FOR APPLE IN THE CHINESE SMARTPHONE MARKET?

The United States restricted Huawei’s access to chip-making equipment necessary for creating the most cutting-edge handset models, which caused its market share to slowly decline. Huawei was once the biggest smartphone company in the world by sales. Using accumulated chips, the business was only able to offer a few number of 5G devices.

Its market share in China, the biggest smartphone market in the world, has decreased this year from 27% to 11%, in part as a result of its decision to sell its entry-level brand Honor in what it claimed at the time as a step to safeguard its survival.

Due to American limitations, Apple is now the primary manufacturer of high-end cellphones in China. According to statistics from the research company Counterpoint, Apple’s market share in China increased over this time from 11% to 19%.

Analysts predict that Huawei’s return to the competitive scene with the Mate 60 will be aided by patriotic fervor as state media and internet users applaud the launch as a rebuke to the United States amid escalating tensions between Washington and Beijing.

According to Ming-Chi Kuo, an analyst at TF International Securities, 5.5 to 6 million Mate 60 Pro devices, or 20% more than initially anticipated volumes, are expected to arrive in the second half of this year.

Additionally, Kuo estimates that total sales of the Mate 60 Pro might reach at least 12 million devices 12 months after introduction.