Chinese tech company Huawei has lowered the prices of several high-end smartphones to increase sales in the highly competitive smartphone market.
Huawei Slashes Prices to Boost Sales in Competitive Market
Huawei has cut the price of its top Pura 70 Ultra phone, which was launched in April. The 1 terabyte version is now priced at 8,999 yuan (about $1,233), down 18% from its original price of 10,999 yuan. The 512 gigabyte version has an even bigger price cut of 20%.
The Mate X5, a foldable phone released in September 2023, is now 2,500 Yuan cheaper than its original price of 12,999 Yuan, which is a 19% discount. This model has been the best-selling foldable phone in China since its release, according to research firm CINNO.
Price Cuts on Pura 70 Ultra and Mate X5 Models
In July, Huawei already made uncommon price cuts of up to 1,000 yuan for the Pura 70 series. The latest discounts come after the release of the Mate 70 series and the foldable Mate X6 in November, as the company aims to capture a larger portion of the market, which is mainly controlled by Apple and other Chinese competitors.
In the September quarter, Huawei’s shipments of premium smartphones (those costing over US$600) grew by 34%, according to consultancy Canalys. This helped the company capture a 33% share of the domestic market, narrowing the gap with Apple, which still leads with a 52% share.
However, the Mate 70 series has seen slower sales due to its processors being weaker than those of competitors, according to analysts at TechInsights. Despite this, total shipments of the Mate 70 series are expected to surpass 10 million units over its lifetime, according to Counterpoint Research.
The release of the Mate 70 series was closely watched to see how Huawei is progressing with its chip development. Last year, despite being on a US blacklist, Huawei surprised everyone by using a 7-nanometre chip in its Mate 60 series smartphones.
Strategic Discounts Following New Releases
Analysts are also paying attention to the sales of Huawei’s foldable phones. The company is the top seller of foldable smartphones in China, making up about half of all domestic shipments, according to the latest data from Counterpoint.
In September, Huawei introduced the world’s first trifold smartphone, the Mate XT. Along with the Mate X6, these devices are expected to strengthen Huawei’s leadership in the foldable market, according to Counterpoint.
Huawei shipped 1.12 million foldable phones in the third quarter, a 97% increase from the previous year, according to CINNO. The Mate X5 was a key factor in this boost in shipments, the research firm added.
