Huawei's MateXT Tri-Fold Phone Shipment Target Raised to 1 Million Units, But Can It Sustain its Initial Momentum?

Huawei's MateXT Tri-Fold Phone Shipment Target Raised to 1 Million Units, But Can It Sustain its Initial Momentum?TF International Securities analyst Ming-Chi Kuo recently released a report stating that the latest supply chain surveys indicate that the shipment forecast for Huawei's MateXT tri-fold phone, dubbed the "Masterpiece," has been revised upwards from 500,000 units to 1 million units for 2024. However, Kuo also highlighted the need to closely monitor if the demand for the MateXT can be sustained after its September 20th launch

Huawei's MateXT Tri-Fold Phone Shipment Target Raised to 1 Million Units, But Can It Sustain its Initial Momentum?

TF International Securities analyst Ming-Chi Kuo recently released a report stating that the latest supply chain surveys indicate that the shipment forecast for Huawei's MateXT tri-fold phone, dubbed the "Masterpiece," has been revised upwards from 500,000 units to 1 million units for 2024. However, Kuo also highlighted the need to closely monitor if the demand for the MateXT can be sustained after its September 20th launch.

Kuo believes that the global foldable phone shipment forecast for 2024 has been lowered from approximately 30 million units to about 15 million units. The primary reason for this adjustment is the inadequate software design for effectively utilizing larger screens, coupled with concerns regarding the durability of foldable phone screens. Additionally, the lower profit margins associated with foldable phones have impacted the willingness of brands to develop and market such devices.

Regarding Huawei's strategic decision to embrace tri-fold phones as its flagship model, Kuo indicated that Huawei's processors lag behind its competitors in performance, restricting its range of differentiation options in the high-end market. Consequently, Huawei has opted to employ a distinctive tri-fold phone design to gain an edge over rivals. The effectiveness of this differentiation strategy hinges on the MateXT's ability to address the pain points of foldable phones, including software compatibility and durability.

Kuo emphasized that no other Android brands currently plan to follow Huawei's lead in releasing tri-fold phones due to significant concerns about durability. Huawei officially unveiled the MateXT on September 10th, and during the pre-order phase, it secured over 6.5 million reservations. As of now, Huawei has not disclosed a concrete shipment schedule for the MateXT.

Despite the upward adjustment in shipment projections for the MateXT, the foldable phone market continues to face numerous challenges. Apart from the already mentioned software and durability issues, price remains a significant barrier to widespread adoption. Currently, most foldable phones are priced at over 10,000 yuan (approximately $1,400 USD), rendering them inaccessible to the average consumer.

The future direction of the foldable phone market hinges on manufacturers' ability to address these pain points. If manufacturers can successfully introduce more practical foldable phones while lowering prices, the foldable phone market has the potential to experience greater growth. Conversely, if these issues remain unresolved, the market's development will be hampered.

As a pioneer in the foldable phone domain, the market performance of Huawei's MateXT tri-fold phone will have a significant impact on the overall foldable phone market. If the MateXT achieves success, it will provide confidence to other manufacturers, promoting further growth within the foldable phone market. Conversely, if the MateXT fails to gain traction, it could negatively impact the entire foldable phone industry.

Therefore, the market performance of the Huawei MateXT warrants close monitoring. We will continue to track the sales figures for the MateXT and the latest developments in the foldable phone market.