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Huawei fans furious after $2,800 phone launch leaves them empty

The latest Huawei and Apple smartphones went on sale in China on Friday, and many fans of the Chinese company were disappointed that its long-awaited $2,800 model — more than twice the price of the iPhone 16 Pro Max — was not available to customers. At Huawei’s flagship store in the southern Chinese city of Shenzhen, some who described themselves as “superfans” were annoyed to be told that only those whose pre-orders had been confirmed could buy the tri-foldable Mate XT.

“I’ve been here since 10pm last night because this tri-fold phone is the first, and I’m happy to support our country,” said a university student surnamed Ye. “But it’s very disappointing. They should have made it clear that we can’t buy it.”

Similarly, at Huawei’s Wangfujing store in Beijing, access to the advertised Mate XT—which folds three ways like an accordion door—was limited to those with confirmed pre-orders. Reuters spotted about 30 people lining up outside the Huawei store in Beijing, and a similar number in Shenzhen. About 100 people lined up outside one of Apple’s main stores in Beijing. Rui, who got to try the Mate XT in Shenzhen, said: “I wanted to see what all the fuss was about, but it’s a bit big, basically impractical.”

Analysts have warned that supply chain constraints could leave potential Mate XT buyers empty-handed, while others have questioned its high cost amid a sluggish economy. While Huawei CEO Richard Yu said during the Mate XT launch earlier this month that the company had turned “science fiction into reality,” owning one remains a fantasy for many.

At Huawei’s flagship store in Shanghai, Yu said sales were “better than expected,” without giving details. The phone sold out in “seconds,” and Huawei is working to expand production capacity, he added.

Pre-orders for the Mate XT have topped 6.5 million, nearly double the roughly 3.9 million foldable smartphones shipped globally in the second quarter of this year, according to consulting firm IDC. The “pre-order” does not require consumers to pay a deposit. Huawei did not say how many phones have been produced so far or how many customers will receive the Mate XT on launch day.

Apple did not respond to a request for comment on how many new iPhones were available for sale in China on Friday. There were about 4,760 listings for the new Huawei phone on Alibaba’s Xianyu platform — both for sale and pre-order — as of Friday afternoon. The average price of the phones on the platform was 50,000 yuan ($7,089).

A saleswoman at a mobile phone stand at the Huaqiangbei electronics market in Shenzhen said she was selling the most expensive version of the Mate XT – with the most memory – for 150,000 yuan ($21,290), compared with a street price of 23,999 yuan and a $2,800 model for more than $4,000.

Asked if she had sold any, she said: “A few people have asked, but it’s way too expensive.” Huawei is considering introducing the phone overseas in the first quarter of next year, a person with knowledge of the matter said.

Apple Needs Chinese AI Partner

While Apple has enjoyed strong demand in China for years, where iPhone launches once caused a frenzy, its sales have fallen, and its quarterly ranking in the world’s No. 2 economy has fallen from third to sixth. Apple’s new smartphone launch has been overshadowed by the fact that the company has yet to announce an AI partner in China to power the 16s, and that Apple Intelligence, its AI software, will be available only in Chinese next year.

Some Apple fans said the AI ​​challenge isn’t a problem. “The lack of AI in iPhones isn’t a major concern for me right now because it’s more of a gimmick at this stage,” said a customer surnamed Shi, who upgrades his iPhone every year. Speaking about Huawei’s new offering, Shi said it’s too expensive and “not for ordinary customers.”

Huawei has received significant patriotic support in China, with fans impressed by how the company has managed to overcome years of U.S. export controls that initially crippled its smartphone business. “The Chinese need to support (Huawei). Our Huawei phones are currently lagging behind in terms of technology and chips, but this gap is exactly where we need to support,” said Jiang, the 60-year-old owner of the company in Beijing.

The launch of the Mate XT, which analysts say has a locally produced chipset, highlights Huawei’s ability to navigate U.S. sanctions, although the company’s ability to mass produce it remains a major concern. Based on recent inspections, key components of the Huawei Mate XT, including the panel, cover glass and hinge, may have production efficiency issues, said Lori Chang, senior analyst at Isaiah Research.

(1 dollar = 7.0460 yuan)

(1 dollar = 7.0530 Chinese yuan)

Posted by:

Unnati Gusain

Published:

Sep 22, 2024