Huawei smartphones with new suppliers draw attention

A new series of smartphones launched by China's Huawei Technologies has drawn global attention for containing technology that indicates the company has managed to overcome U.S. sanctions and could come back as a rival to Apple.

In late August, the company unveiled the Mate 60 and Mate 60 Pro, and on Friday it unveiled two more phones, the Mate X5 which is a new version of its foldable phones and the Mate 60 Pro+. The Mate 60 is priced at 599 yuan, the same as Apple's iPhone 14 in China.

What are some key things to know about Huawei's new phones, their suppliers, and what they could mean for the world's largest smartphone market?

The Huawei devices have mainly advertised the ability to support satellite communication that enable users to make calls or send messages even in areas without mobile signals or internet, such as on mountains or at sea.

It has not revealed the details of the chips used, but analysis firm TechInsights has discovered that the phone is powered by a new Kirin 9000s chip made by Semiconductor Manufacturing International Corp in China.

Speed tests shared on social media have shown that the Mate 60 Pro is capable of downloading faster than the top line 5G phones.

Chinese buyers comparing the iPhone 14 to Apple's latest iPhone 14 have said they have similar storage and memory features. The launch also comes days before Apple is expected to launch its new iPhone 15 on Sept. 12th.

60 components, though apart from SMIC, TechInsights also said it found South Korea's SK Hynix's DRAM and NAND components in the phone.

SK Hynix, which said it stopped doing business with Huawei since the United States introduced restrictions on the firm in 2019, has said it is investigating.

The Mate 60 Pro also has more Chinese-made chips than previous models, TechInsights said.

Lists of potential Chinese suppliers have been widely distributed online, with shares of firms touted as potential candidates soaring on the speculation.

Most of these are existing suppliers to Huawei. For example, shares in Dongguan Chitwing Technology Co. Ltd, which makes molds, rose by the daily upward limit of 10% in the days after Huawei's launch. Display maker Visionox Technology, whose shares have risen by 15% since the new phones were launched on August 29, told Reuters it was a supplier for the new Mate 60 series.

The United States cut down Huawei's access to chip-making tools essential for the development of the most advanced handsets, which was once the world's largest smartphone firm. The company had only been able to sell a limited number of 5G models using stockpiled chips.

China's market share in China, the world's biggest smartphone market, has fallen to 11% so far this year compared with 27% in 2020, in part also due to its move to sell its budget brand Honor, which it described as a bid to ensure its survival.

The U.S. regulations left Apple as the top manufacturer of high-end smartphones in China. Apple's market share in China rose from 11% to 19%, according to data from counterpoint.

Analysts say that the Mate 60 may mark Huawei's comeback as a rival, with sales helped by patriotic fervor as state media and internet users cheer the launch as a blow against the United States amid rising tensions between Washington and Beijing.

Ming-Chi Kuo, an analyst at TF International Securities, said he expected the Mate 60 Pro to ship between 5.5 to 6 million units for the second half of this year, up 20 percent from previously planned volumes.

And cumulative shipments of Mate 60 Pro could reach at least 12 million units 12 months after launch, Kuo said.