Huawei is working to increase production of its new Mate 60 Pro smartphone, which supports fifth generation networks, to meet demand, and the company has also reduced the waiting period for delivery of new models equipped to three months with advanced chipsets manufactured in China, extended. Challenging US sanctions.
"The production capacity could not meet the demand, so the company introduced the first order system," said Wang Yang, senior analyst at Counterpoint Research, adding that first sales help the company save time on supplier orders.
Wang also noted that the secrecy surrounding the advanced Kirin 9000s processor used in the Mate 60 Pro makes it difficult for Huawei's supply chain partners to purchase spare parts, a long process that typically takes 12 to 18 months before the device reaches the market.
Last week, the company launched a subscription plan for the Mate 60 Pro and promised that consumers would not have to wait longer than 90 days after placing an order through that plan, an unusual move for a product on the market.
Each consumer can purchase only one device and the company will ship it randomly within 90 days.
Some consumers participating in the program posted the status of their orders on Chinese microblogging platform Weibo, explaining that the promised delivery range was from early this month to February next year.
Huawei's return to the 5G smartphone market and its efforts to rebuild its highly profitable business show that the company still has many challenges ahead after years of US trade sanctions.
According to data from Counterpoint Research, domestic sales of the Mate 60 Pro series exceeded two million units eight weeks after its launch in August.
Huawei's 5G mobile phone business continues to maintain strong momentum in the Double 11 sales season, and sales in the first week of Double 11 are expected to rank third among smartphone vendors.
“Huawei benefited from the continued popularity of the Mate 60 Pro series and significant price drops for some older models, leading to impressive sales during Double Eleven,” said Ivan Lam, senior analyst at Counterpoint Research.
“It is also worth noting that the Mate 60 Pro series is still facing supply shortages, resulting in limited daily sales,” Lin added.
Huawei's major suppliers are ramping up hiring of assembly line workers to meet the growing demand for the Mate 60 Pro phones. Starting in September, Foxconn will offer workers who make Huawei phones higher prices than those who assemble iPhones.
Dylan Patel, senior analyst at semiconductor research firm SemiAnalogy, pointed out that SMIC's 7nm manufacturing technology is similar to Taiwanese TSMC's semiconductor manufacturing technology, but there are differences in some technical aspects.
“SMIC is only a few years behind Intel, Samsung and TSMC due to restrictions imposed by the US government,” Patel said, explaining that the short supply of the Mate 60 Pro series reflects the huge demand for the company's first smartphone. .