Huawei has slashed prices on its premium handsets in a bid to gain market share in China’s competitive high-end smartphone sector. The company announced markdowns of up to 20% on its officially sold premium smartphones. The Mate X5, a foldable smartphone launched in September 2023, is now offered at 2,500 yuan less than its original starting price of 12,999 yuan, a 19% discount.
According to data from research firm CINNO, the Mate X5 has been China’s top-selling foldable handset since its launch. Huawei’s latest foldable smartphone, the trifold Mate XT, has also seen a surge in popularity, contributing to the company’s competitive stance in the market. Recent figures show Huawei’s market presence surged by 34% in the September quarter.
The price cuts come after the launch of the flagship Mate 70 series and the foldable Mate X6, as Huawei seeks to gain a larger share of a market dominated by Apple and several Chinese rivals. According to consultancy Canalys, Huawei’s domestic shipments of premium-priced smartphones gave the company a 33% share of its home market, closing in on Apple, which continues to lead with a 52% share.
Huawei gains ground with price cuts
However, analysts at research firm TechInsights note that the latest Mate 70 series has weaker processors compared to competitors. Despite this, total shipments of the Mate 70 series are expected to increase, according to Counterpoint Research. The industry is closely monitoring the Mate 70’s release for insights into Huawei’s progress in chip development.
Last year, the firm surprised the world by incorporating new advancements in its Mate 60 series smartphones. The sales performance of Huawei’s foldable handsets is also of significant interest to analysts, as the company accounts for around half of total domestic shipments according to the latest data from Counterpoint. In September, Huawei launched the Mate XT along with the Mate X6, which are expected to help cement the company’s leading position in the segment.
Huawei shipped 1.12 million foldable handsets in the third quarter, up 97% year-on-year, according to CINNO. The Mate X5 was a main contributor to this growth, the research firm said.
