Huawei’s Rise in China’s Smartphone Market #

Huawei surged to the forefront of China’s smartphone market last year with the Mate 60 Pro, featuring an advanced computer chip developed by a Chinese company. This chip symbolizes the tech rivalry between China and the U.S., as Washington has long sought to restrict China’s chip-making capabilities. Despite these challenges, Huawei has emerged as a national leader in technology, attracting customers who might have otherwise chosen iPhones.

This leadership was reaffirmed when Huawei unveiled the Mate 70 series from its Shenzhen office. This new flagship phone is powered by HarmonyOS Next and offers AI-enhanced features—such as improved photography and real-time translation—that Apple has yet to introduce in China. Priced starting at $760, the Mate 70 directly competes with the iPhone.

Huawei’s success depends on securing a reliable chip supply. It has partnered with SMIC, the only Chinese maker of advanced chips, to overcome U.S. restrictions that hinder access to the latest chip-making machinery. Challenges remain, as SMIC struggles to meet the demand for Huawei and other domestic companies reliant on its production.

By Tuesday, more than three million people had registered interest in the latest Mate 70, which is now set to go on sale. Huawei’s journey to become China’s defining tech brand echoes in Meng Wanzhou’s return from Canada in 2021, following her detention over fraud allegations. Huawei’s expanding portfolio and advanced AI developments reinforce its resilience against foreign restrictions.

Over two years, Huawei has steadily reclaimed Apple’s stronghold in the high-end smartphone market in China. While three-quarters of premium smartphones sold were iPhones in 2022, this year, the figure dropped to half, and Huawei’s market share more than doubled. Huawei aims to reclaim market share from the iPhone in China.

However, competition from domestic brands like Xiaomi and Oppo, which offer lower-priced devices, presents additional challenges. Huawei will need to diversify its range to include more affordable options, requiring a substantial supply of chips. With foreign chip makers withdrawing from Chinese clients, SMIC faces increased pressure as the primary source of advanced chips. “Not only Huawei but now all China-based A.I. makers, they face the same issue,” Linda Sui remarked, highlighting the growing supply constraints.