In August 2023, Huawei sent shockwaves through the smartphone industry with the launch of its flagship Mate 60 series. Regardless of U.S. Sanctions that prohibited Huawei from utilizing utility processors essential for 5G connectivity, the Chinese tech giant was able to secure alternative support from China’s leading foundry, Semiconductor Manufacturing International Corporation (SMIC), which supplied Kirin 9000 system-on-chip (SoC) designs. The Huawei Kirin 9000 series, developed in collaboration with Semiconductor Manufacturing International Corporation (SMIC), was fabricated using SMIC’s 7nm node, making the Mate 60 the first Huawei flagship device to support 5G connectivity since the 2020 Mate 40 series.
The flagship Huawei Mate 70 RS – its final design boasts unparalleled sophistication. | Picture credit-Huawei
DUV (deep ultraviolet) machines are typically not employed for manufacturing chipsets with a process node smaller than 7nm. Despite being unable to procure EUV technology, SMIC was forced to rely on multiple exposures using DUV, ultimately leading to prolonged manufacturing times, increased costs, reduced yields, and mismapped patterns.
According to a newly released report, enthusiasm surrounding Huawei’s Mate 60 series in China, which had a hint of nationalism last year, is not being replicated with the Mate 70 lineup this year. Jefferies, a brokerage agency, released a report on Thanksgiving Day noting a notable decrease in enthusiasm for Huawei’s Mate 70 series, citing lackluster reviews and online feedback. As a result, Apple’s iPhone may benefit from waning enthusiasm for Huawei’s 2024 flagship offerings in China.
Jeffries earlier this year forecasted that Huawei would ship approximately 48 million phones in China for the current year. While the P30 Pro, Huawei’s photography-focused flagship, saw a relatively modest shipment of around 5 million units in the past year. According to reports, Huawei’s Mate 60 series has already shipped out approximately 12-13 million units, surpassing initial projections of 15-16 million devices. According to Jefferies analysts, the upcoming Mate 70 may potentially launch with a reduced product lineup compared to its preceding model.
While Huawei’s Mate 70 may struggle to surpass the Mate 60’s impressive sales figures, its actual performance remains uncertain. According to Jefferies, a revised Huawei cargo forecast of 48 million units for the current year appears overly optimistic, potentially benefiting Apple’s iPhone and other competitors.
While Huawei claims its Mate 70 series boasts the company’s most powerful smartphones to date, both customers and industry experts argue that the advancements are modest at best. According to Jefferies, the absence of any manufacturing yield improvements suggests that the same inventory shortages seen with the initial Mate 60 launch last year may recur when the Mate 70 series is released.
According to Canalys analyst Toby Zhu, his perspective diverges significantly from that of his counterpart at Jefferies. The Mate 70’s gross sales are expected to narrowly surpass those of its predecessor, the Mate 60.
Huawei maintained its position as China’s second-largest smartphone manufacturer during Q3, marking a fourth successive quarter of over 10 million unit shipments. The agency is making a successful resurgence onto the scene. By mid-2022, Huawei had managed to ship just 4.1 million devices.
