The editor found that many friends are very interested in the fact that the foldable technology is so expensive that the US $ 2700 Huawei Mate Xs is also sold at a loss. This is why the foldable technology is so expensive that the US $ 2700 Huawei Mate Xs also sold at a loss to organize some relevant information and share it with everyone here.
Huawei has once again mentioned that this makes the cost of a folding phone like a companion X 5 a moment too high. In fact, Yu Chengdong, CEO of the company’s customer business department, said that all high-end mobile phones like Huawei P40 phones require huge fees.
Therefore, despite the high price tag of the flagship store of the Chinese giant, it insists that its gross profit is still very low compared to competitors such as Apple and Samsung.
For traditional phones, display screens, camera sensors and chipsets are usually expensive components. For example, Huawei stated that the P40’s single camera component cost more than $ 100.
Mate Xs is not profitable
Putting a flexible screen into the screen makes things more complicated and expensive. Therefore, although the prices of Mate X and Mate Xs are about US $ 2400 and US $ 2700 respectively, Huawei actually suffered losses in sales.
This is not a small loss. According to Yu Chengdong, the company lost nearly US $ 60-70 million on Mate Xs.
Huawei mainly attributed the loss to the cost of the foldable screen. Understandably, this is a new technology, so no wonder the price will be high. Moreover, unless the price drops, Yu Chengdong believes that the company will not be able to make money with flexible equipment.
The executive has previously stated that the price of foldable phones may take up to two years to fall to the level of ordinary phones.
Huawei will also increase investment in research and development this year. At the same time, as the company continues to produce more foldable equipment, its scale of operations will also increase. In theory, this will enable the technology giant to reduce costs. Hope this will be passed on to consumers.
Another idea is to sell flexible displays to other suppliers to increase revenue. Royole, which released the first foldable phone, has announced the sale of its second-generation flexible screen to ZTE.
At least in China, the demand for foldable phones is still huge
As for why despite losses, Huawei is still producing foldable phones like Mate Xs, because of the high demand. Both Mate X and Xs received a huge response from China’s initial flash memory sales. It took a few minutes to clear the inventory.
Huawei seems willing to maintain losses in the short term to take advantage of this trend. This is why it wants to quit production rather than quit production.
In 2019, the company’s consumer sector managed to increase its revenue by 34% compared to last year. After the US ban, manufacturers have focused on China.
For China, the worst situation is clearly over, because the country gradually returned to normal after the outbreak. Huawei is confident that it will still be able to achieve growth this year.
Therefore, as long as other products are profitable, Huawei may be able to bear the loss of foldable phones.
As you may already know, Mate Xs is an improved version of Mate X. The true successor to this phone is expected to be launched later this year.
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