Sales of Huawei Technologies' latest Mate 70 smartphone series are expected to lag behind those of its predecessor, the Mate 60, analysts said, due to weaker processor performance amid rising supply chain risks.
The Mate 70 was launched on November 26 at an event in Shenzhen, where Huawei Consumer Business Group President Yu Chengdong hailed the new series as “the most powerful Mate phones in history.”
However, Mr. Yu did not mention any details about the product's processor or the reason why this new model was released later than Singles' Day - the world's largest annual shopping festival on November 11.
The Mate 70 was displayed at Huawei's event on November 26. (Photo: EPA)
Huawei's latest launch event highlighted artificial intelligence (AI) features and its self-developed HarmonyOS Next operating system on the Mate 70, which the company said offers 40% higher performance than the Mate 60.
The new lineup – which includes the Mate 70, Mate 70 Pro, Mate 70 Pro+ and Mate 70 RS – is powered by the Kirin 9010 and 9020 mobile processors designed by HiSilicon, according to a report published on November 28 by Canadian semiconductor research firm TechInsights. The report said the chips are “less efficient” than the latest processors from Qualcomm and MediaTek.
“ Despite hardware improvements and new AI features, a delayed launch and modest chipset upgrades could limit the product’s sales potential ,” TechInsights analysts Peng Peng and Linda Sui said in the report.
TechInsights predicts Mate 70 sales will reach 3 million units this fourth quarter, accounting for about 22% of Huawei's total smartphone shipments during the period.
Customers "get their hands on" the Huawei Mate 70 on launch day. (Photo: EPA)
In addition to the modest chip upgrade, TechInsights’ forecast suggests the Mate 70’s appeal will be limited outside of China because Harmony OS Next doesn’t support Android apps. Huawei said on launch day that all smartphones and tablets launched by 2025 will run on HarmonyOS Next, as the company ramps up its efforts to become more self-sufficient in technology.
The Mate 70 series is expected to be widely released in China on December 4, but Huawei has not revealed plans for overseas sales.
Total shipments of the Mate 70 series are expected to exceed 10 million units over the life of the product, according to Counterpoint Research. Meanwhile, the Mate 60, which launched last August, sold 12-13 million units, according to Phone Arena estimates.
The smartphone industry is closely watching the launch of the Mate 70 to gauge Huawei’s progress in chip development. The US-blacklisted company surprised analysts last year by integrating 7-nanometer chips into the Mate 60 series.
A detailed analysis of the components shows that the processor was manufactured by Semiconductor Manufacturing International Corporation (SMIC) in Shanghai, marking a technological breakthrough despite US sanctions.
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