Huawei 'super fans' annoyed at lack of supply as $3,600 tri-fold Mate XT phone hits China stores

SHENZHEN - Huawei's and Apple's latest smartphones went on sale in China on Sept 20, with many fans of the Chinese company disappointed that its much-anticipated US$2,800 (S$3,600) Mate XT phone - more than twice the price of the iPhone 16 Pro Max there - was not available for walk-in customers.

At Huawei's flagship shop in the southern Chinese city of Shenzhen, some who described themselves as Huawei "super fans" were annoyed after being told only those whose pre-orders were confirmed could buy the new tri-fold Mate XT.

"I've been here since 10pm because this tri-folding phone is a first and I'm excited to support our country," said a university student surnamed Ye.

"But this is very disappointing. They should have made it clear we can't buy."

It was a similar story at the Huawei Wangfujing store in Beijing, where access to the much-hyped Mate XT - which folds three ways like an accordion screen door - was restricted to those whose pre-orders were confirmed.

Reuters saw around 30 people queuing outside the Huawei store in Beijing and a similar number at its flagship shop in Shenzhen early on Sept 20. Around 100 people were seen queuing outside one of Apple's main stores in Beijing.

A shopper surnamed Rui, who got to try out the Mate XT in Shenzhen, said: "I wanted to see what the fuss is about, but it's a bit big, not very practical really."

The disappointment comes as some analysts warned that supply chain constraints could leave many potential buyers of the Mate XT empty-handed, and others questioned the high cost of the phone amid a sluggish economy.

While Huawei executive director Richard Yu said at Mate XT's unveiling earlier in September that the company has turned "science fiction into reality", owning the phone still remains a fantasy for many.

At the company's flagship store in Shanghai, he said that sales were "better than expected", without providing details. The phone was sold out in "seconds" and the company was working to expand capacity, he added.

Pre-orders for the Mate XT have surpassed 6.5 million, almost double the roughly 3.9 million foldable smartphones shipped worldwide in the second quarter of this year, according to consultancy IDC.

"Pre-ordering" does not require consumers to put down a deposit.

Huawei did not say how many phones had been produced so far or how many customers would receive the Mate XT on the launch day. Apple did not respond to a request for comment on how many new iPhones were available for sale in China on Sept 20.

In the Huaqiangbei electronics market in Shenzhen, a phone stall vendor said she was selling the most expensive version of the Mate XT - with the highest memory - for 150,000 yuan (S$27,400), compared to the store price of 23,999 yuan, while she was offering the US$2,800 model for more than US$4,000.

Asked if she had sold any, she replied: "A few people have asked, but it's far too expensive."

Huawei is exploring launching the phone in overseas markets in the first quarter of 2025, according to a person with knowledge of the matter.

Apple needs China AI partner

While Apple for years enjoyed strong demand in China, where new iPhone launches once sparked a frenzy, its sales have dwindled and the company's quarterly ranking in the world's No. 2 economy has now dropped from third to sixth place.

Apple's new smartphone launch in China has been overshadowed by the fact that it has yet to announce an artificial intelligence (AI) partner in the country to power the 16s, and Apple Intelligence, its AI software, will be available in Chinese only in 2025.

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Some Apple fans said the AI challenge was not an issue.

"The lack of AI in iPhones is not currently a major concern for me, as it's more of a gimmick at this stage," said a customer surnamed Shi who upgrades his iPhone annually.

Speaking about the new offering by Huawei, he said it was too expensive and "not for ordinary customers".

Huawei has received significant patriotic support in China, with fans impressed at how the company has managed to overcome years of export controls by the United States that initially crippled its smartphone business.

"Chinese people need to support (Huawei). Our Huawei phones currently lag behind in terms of technology and chips, but it's this gap that calls for our support," said Jiang, a 60-year-old business owner in Beijing.

The launch of the Mate XT, which analysts say has a locally made chipset, underscores Huawei's ability to navigate US sanctions, although the company's ability to mass-produce remains a significant concern.

Based on recent checks, key components of the Huawei Mate XT, including the panel, cover glass, and hinges, may be facing production yield issues, said Ms Lori Chang, a senior analyst with Isaiah Research.