In a surprising move without any prior advertisement or announcement, Chinese tech giant Huawei launched its newest flagship phone, the Mate 60 Pro, on August 29th, causing a significant stir in the Chinese internet world.
In an open letter to Huawei users, the company declared the new phone as the world’s first consumer smartphone capable of satellite communication. “Even without ground network signals, users can make and receive satellite calls, keeping them online at all times,” Huawei said. Reports from Yicai Global highlight that while high-end phones from brands like Apple and Samsung have integrated applications for satellite communications, they only support text messaging.
However, greater public attention revolves around whether the Mate 60 Pro features Huawei’s self-developed chipset and if it’s a 5G phone. For context, 5G, or fifth-generation telecommunication systems, offer greater bandwidth, high reliability, low latency, and broader connectivity – simply put, faster internet speeds. The Mate 60 Pro utilizes Huawei’s self-developed Kirin 9000S chip.
Online videos suggest that although the Mate 60 Pro doesn’t have any 5G labeling, its download speeds meet 5G benchmarks. Users who have tested the device confirmed this to Caixin Global.
According to Bloomberg, various teardown videos circulating online indicate that the Mate 60 Pro uses a Kirin chip designed by Huawei’s chip division, HiSilicon. It’s also mentioned that this chip may utilize 5-nanometer process technology, just a generation behind the most advanced technology. Yet, Bloomberg commented that the exact manufacturer and level of advancement of the chip remain uncertain.
Last month, a research firm informed Reuters that Huawei plans to re-enter the 5G smartphone market by sourcing chips domestically, capitalizing on its leading semiconductor design tools and chips from SMIC, China’s largest chip manufacturer. Huawei declined to comment at the time. Economic Observer quotes teardown experts from Shenzhen’s Huaqiangbei electronics market, asserting that the main chip of the Mate 60 Pro uses a 7-nanometer process made by a Chinese company and supports 5G. But semiconductor professionals told the Economic Observer that it’s technically impossible to determine the chip’s manufacturing process just by unpacking it. So, it remains uncertain if the chip indeed uses a 7-nanometer process manufactured by SMIC.
The semiconductor industry considers processes of 7-nanometers and below as advanced, a technological threshold for high-end smartphone system chips. If the rumors are true, it suggests that Huawei has overcome the technological constraints set by the U.S., enabling them to produce advanced chips autonomously.
While Huawei hasn’t officially commented, the public interest in the Mate 60 Pro remains high. Many netizens believe this phone showcases Huawei’s resurgence after years of U.S. software and hardware restrictions. Some even commented, “Finally, we can ditch Apple’s iPhone for Huawei!”
By 2:15 pm on August 31st, the terms “Huawei Mate 60” and “Huawei Mate 60 for sale” had amassed 900 million and 280 million views, respectively, on Weibo.
The interest in Huawei’s new phone isn’t just limited to online discussions. Multiple media outlets in China reported that the Mate 60 Pro quickly sold out online and in physical stores after its Tuesday release. Huawei’s Shanghai flagship store even saw long lines of customers waiting to reserve their device.
Feedback from brick-and-mortar stores in Shanghai on August 30th, reported by Yicai Global, suggested that the Mate 60 Pro was out of stock in many Huawei Experience Stores and flagship stores. Even display models for customer experiences were in short supply.
Huawei’s online store shows that the current Mate 60 Pro configuration available is 12GB+512GB, priced at 6999 yuan (approx. USD 1085).
This buying frenzy indirectly boosted the stock prices of companies within Huawei’s phone industry supply chain. Bloomberg reported that investors are flocking to related stocks. Shares of more than ten Chinese chip design firms, manufacturers, and Huawei suppliers surged between 8% to 20% on Wednesday.
Reuters quoted retail investor Lu Deyong saying he invested in Siwei Electronics, which has business ties with Huawei, and also in the tech-focused Sci-Tech 50 Index. “I see a lot of capital flowing in, showing people are optimistic about the product’s launch and its underlying technology… I can’t confirm if the technology is genuine, but I hope so.”
The U.S. Department of Commerce had added Huawei to the Entity List in 2019, barring American suppliers from providing semiconductor tech and products without permission. The U.S. later extended this ban to any semiconductors made with U.S. tech or software. This severely damaged Huawei’s previous dominance in the smartphone domain. The Wall Street Journal cited market tracker Canalys, noting Huawei’s global smartphone market share peaked at 18% in 2019. But post the U.S. ban, their global attraction waned, resulting in plummeting sales. By last year, Huawei’s global smartphone market share was just 2%, with most of their sales concentrated in China, still holding 8% of the market share there.
How Huawei has managed to overcome the technological restraints imposed by U.S. sanctions remains a mystery. The U.S. Semiconductor Association claimed last week that Huawei is secretly building a series of semiconductor manufacturing facilities under different company names across China, skirting U.S. sanctions that prevent them from purchasing U.S. chip-making equipment.
Hu Xijin, former Chief Editor of the Global Times, believes that the impact of Huawei’s new phone on the U.S. government seems to be stronger than the warning previously issued by the U.S. Semiconductor Association.
Hu wrote on his WeChat account that “this is bound to attract significant attention from the U.S.” He suggested that if Huawei succeeds, the West’s monopoly on chips and related manufacturing equipment could be shattered, driving prices down. He describes the U.S. strategy to restructure the supply chain to exclude China from the high-end semiconductor industry as “having a significant loophole.”
Hu predicts, “It’s imaginable that a Washington agitated by the Mate 60 will initially try to intensify sanctions on Huawei and export restrictions on other Chinese firms.”
The Global Times also commented that the reintroduction of a Huawei phone after three years of enforced silence proves that the U.S.’s utmost suppression has failed.
The article wrote: “This is also a microcosm of the U.S.’s tech war against China, reflecting the entire process and predicting the eventual outcome. Recent U.S. media hype about Huawei having a ‘secret chip factory’ in China is all based on outdated thinking that Chinese companies’ technology is all ‘stolen,’ which is Washington’s technological arrogance, and they will pay for this arrogance.”
Huawei’s phone launch collided with U.S. Commerce Secretary Ramondo’s visit to China. Interestingly, a Weibo account under China’s state broadcaster CCTV shared a photo of Ramondo at a press conference in Shanghai, taken by the Mate 60 Pro.
The timing of Huawei’s phone release is intriguing, especially given Ramondo’s department is responsible for overseeing U.S. government export controls and restrictions, including sanctions against Huawei.
However, market factors likely played a role in Huawei’s decision. Apple is set to hold a conference on September 12th in the U.S., where they are expected to release a new iPhone. So, launching the Mate 60 Pro without warning might have been Huawei’s strategy to seize the initiative. Online rumors suggested that the Huawei Mate 60 Pro and Apple iPhone 15 might have been launched on the same day.
Regardless of their motives, Huawei’s comeback is sure to stir the mobile market. Whether Huawei can turn the tide and return to its past glory depends on the reception by consumers.
Source: Lianhe Zaobao