Huawei Technologies has launched aggressive price cuts on its premium smartphones, signaling a bold move to bolster its presence in the highly competitive Chinese smartphone market. These discounts, some reaching up to 20%, are aimed at challenging rivals like Apple and other domestic brands in the battle for dominance in the high-end segment.
Deep Discounts on Flagship Models
On its official online store, Vmall, Huawei is now offering significant markdowns on several of its flagship devices. The Pura 70 Ultra, which debuted in April, now costs 8,999 yuan (approximately $1,233) for the 1-terabyte model—a reduction of 18% from its original price of 10,999 yuan. The 512GB version sees an even steeper discount, slashed by 20%.
Another premium model, the Mate X5, a foldable smartphone launched in September 2023, is now priced 2,500 yuan lower than its original price of 12,999 yuan. This 19% discount highlights Huawei’s strategy to make its foldable devices more accessible. Notably, the Mate X5 was China’s top-selling foldable handset following its launch, according to CINNO Research.
A Pattern of Strategic Price Reductions
This is not Huawei’s first attempt at aggressive pricing. In July, the company made rare price cuts of up to 1,000 yuan on the Pura 70 series. The latest round of discounts comes shortly after the launch of the flagship Mate 70 series and the foldable Mate X6 in November. These devices are part of Huawei’s effort to capture a larger slice of China’s high-end smartphone market, where Apple and other domestic brands currently hold sway.
A Surge in High-End Sales
Huawei’s efforts are already yielding results. According to Canalys, Huawei’s shipments of premium smartphones—priced over $600—rose by 34% in the third quarter of 2024, giving the company a 33% share of China’s high-end market. While Apple continues to lead with a 52% market share, Huawei’s growth has brought it significantly closer to its rival.
Challenges in the Market
Despite the strong performance, Huawei faces hurdles. Analysts from TechInsights note that sales of the Mate 70 series have been somewhat subdued due to its weaker processors compared to competitors. However, the series is still expected to surpass 10 million units in total shipments during its lifecycle, according to Counterpoint Research.
The Mate 70 series has also been a focal point for industry analysts, who are keen to assess Huawei’s progress in chip development. The company made headlines last year by incorporating a 7-nanometer chip into its Mate 60 series smartphones, a feat that defied expectations amidst U.S. sanctions.
The Foldable Advantage
Huawei’s foldable smartphones continue to lead the market in China. The company shipped 1.12 million foldable handsets in the third quarter of 2024, marking a staggering 97% year-on-year growth, according to CINNO Research. The Mate X5 was a key contributor to this surge, and Huawei’s dominance in the foldable segment remains strong, with the company accounting for around half of all domestic shipments.
The introduction of the Mate XT, the world’s first trifold smartphone, further cements Huawei’s leadership in this niche market. Together with the Mate X6, these innovations are expected to solidify Huawei’s position as the top foldable smartphone vendor in China.
Looking Ahead
Huawei’s aggressive pricing strategy and its commitment to innovation in foldable and high-end smartphones highlight its determination to regain and expand its market share. While challenges remain, particularly in competing with Apple’s dominance and improving its chip technology, Huawei’s moves suggest a company focused on resilience and adaptation.
With its latest discounts and a robust lineup of cutting-edge devices, Huawei is poised to remain a significant player in China’s premium smartphone market, driving competition and setting new standards in the industry.
