Huawei is intensifying its fight for dominance in China’s high-end smartphone market by introducing significant price cuts on its premium devices. With discounts reaching up to 20%, the tech giant aims to challenge Apple and other competitors in the world’s largest smartphone market. This aggressive strategy signals Huawei’s determination to secure a larger market share despite challenges in chip technology and global competition.
Steep Discounts on Flagship Devices
Huawei has reduced the price of its flagship Pura 70 Ultra, launched in April, by 18%. The 1TB version now costs 8,999 yuan (US$1,233), down from its original price of 10,999 yuan. Meanwhile, the 512GB version has seen a steeper discount of 20%. The Mate X5, Huawei’s popular foldable smartphone launched in September 2023, now comes with a 19% markdown, priced 2,500 yuan lower than its initial cost of 12,999 yuan.
This isn’t the first time Huawei has adjusted prices for the Pura 70 series. In July, the company introduced rare price cuts of up to 1,000 yuan. These latest reductions, however, coincide with the November launch of the Mate 70 series and the foldable Mate X6, underscoring Huawei’s commitment to bolstering sales and competing in a market where Apple dominates.
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Gaining Ground in the Premium Segment
Huawei’s aggressive pricing strategy appears to be yielding results. Domestic shipments of premium smartphones, priced above US$600, rose 34% in the September quarter, according to Canalys. This growth has given Huawei a 33% share of the Chinese market, closing in on Apple’s leading 52% share.
However, analysts have raised concerns about the Mate 70 series. While it has generated interest, its weaker processors compared to competitors may impact its long-term sales. Research firm Counterpoint predicts total shipments of the Mate 70 series will exceed 10 million units during its lifecycle, but it remains to be seen if this will significantly challenge Apple’s dominance.
Leadership in the Foldable Market
In the foldable smartphone segment, Huawei continues to lead. The Mate X5, China’s top-selling foldable handset since its launch, has contributed to the company’s success. According to CINNO, Huawei shipped 1.12 million foldable devices in the third quarter, marking a 97% year-on-year increase. These numbers highlight Huawei’s stronghold in a niche market, where it accounts for nearly half of all domestic shipments.
The launch of the Mate XT, the world’s first trifold smartphone, and the Mate X6 is expected to further cement Huawei’s position in this segment. Counterpoint suggests these innovations could solidify the company’s dominance in foldable devices.
A Strategy to Reclaim Leadership
Huawei’s price cuts and innovative products reflect its ambition to reclaim leadership in China’s premium smartphone market.
With aggressive pricing and a clear focus on innovation, Huawei is poised to reshape the competitive landscape in China’s high-end smartphone sector.
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