The Chinese tech giant Huawei Technologies has made significant price cuts to its high-end smartphones to strengthen its foothold in the competitive Chinese market. With fierce competition from rivals, including Apple, Huawei slashes prices across several premium models.
Discounts on flagship devices
One of the biggest reductions is on the Pura 70 Ultra, a flagship model launched in April. The 1-terabyte version is now priced at 8,999 yuan (US$1,233), representing an 18% drop from its initial cost of 10,999 yuan. Meanwhile, the 512-gigabyte version has an even steeper discount of 20%, according to Huaweiโs official online store, Vmall.
The Mate X5, a foldable smartphone released in September 2023, has also seen a price reduction. Its starting price has been slashed by 2,500 yuan, bringing it down from 12,999 yuanโa 19% discount. This model has been a standout performer, becoming Chinaโs top-selling foldable device since its launch, as reported by research firm CINNO.
In July, Huawei had already applied rare discounts of up to 1,000 yuan on its Pura 70 series. The latest round of price cuts follows the November release of the Mate 70 series and the foldable Mate X6, part of Huaweiโs broader strategy to secure a bigger slice of Chinaโs high-end smartphone market, currently dominated by Apple and other Chinese brands.
Domestic sales are on the rise
Huaweiโs efforts have shown some success. Domestic shipments of its premium smartphonesโpriced above US$600โrose 34% in the September quarter, according to consultancy Canalys. This surge gave Huawei a 33% market share in this segment, closing in on Appleโs 52% share.
However, analysts at TechInsights noted that the Mate 70 series may face challenges due to its weaker processors compared to competing models. Even so, total shipments of Mate 70 series handsets are projected to exceed 10 million units over their lifecycle, according to Counterpoint Research.
Huaweiโs advancements in chip technology have also been under scrutiny. Last year, the company surprised the industry by incorporating a 7-nanometre chip into its Mate 60 series smartphones, despite being blacklisted by the US.
Leading the foldable smartphone market
Huaweiโs performance in the foldable smartphone sector continues to impress. According to Counterpoint Research, the company remains the top vendor in China, accounting for roughly half of all domestic shipments.
In September, Huawei launched the Mate XT, the worldโs first trifold smartphone. Alongside the Mate X6, these devices are expected to solidify Huaweiโs dominance in the foldable market.
CINNO reported that in the third quarter of 2023, Huawei shipped 1.12 million foldable smartphones, a 97% year-on-year increase. The Mate X5 was a major contributor to this growth, underscoring Huaweiโs success in this innovative segment.
Huaweiโs aggressive pricing strategy and continuous innovation highlight its determination to remain a key player in Chinaโs highly competitive smartphone market.
