Huawei has taken a bold step in its international expansion strategy with the launch of its trifold smartphone, Mate XT, outside of China on Tuesday. This move marks a significant test of Huawei's appeal in the global market as it seeks to regain ground lost in recent years. Despite holding a mere 0.3% market share outside of China, Huawei is pushing forward with its innovative device, priced at 3,499 euros ($3,660).
The Mate XT, distinguished by its ability to fold at two points and display content on up to three screens, positions itself as a luxury item in the smartphone market. Huawei aims to capture the attention of wealthy individuals who are eager to showcase their financial prowess through ownership of such an exclusive device. Francisco Jeronimo commented on this ambition.
"I think what they [Huawei] believe that the trifold can be a unique value proposition and because it is very expensive, they aim to target wealthy individuals who are more keen on showing off they have the money versus having the best experience you can get." – Francisco Jeronimo
However, the Mate XT faces significant challenges. The absence of popular Google apps on Huawei's app store poses a barrier for international consumers accustomed to services like Netflix and Google's Play Store. Neil Shah highlighted this critical issue.
"Lack of Google still is a 'gaping hole' for mainstream international market especially those who will pay top dollar for a tri-fold hardware but which want to run Netflix or Google's Play Store or the latest cutting edge GenAI Google Gemini features." – Neil Shah
Despite these hurdles, Huawei remains optimistic. The company hopes to leverage its growing momentum in China, where its market share increased from 12% to 17% in 2024, according to IDC data. By focusing on high-end devices like the Mate XT, Huawei aims to entice international consumers with its cutting-edge technology.
Although the Mate XT will not be sold in large volumes, its potential impact on Huawei's revenue could be substantial. Selling half a million units could generate $1.5 billion for the company. However, Huawei has yet to disclose which countries will see the Mate XT available for purchase.