Huawei’s Mate 60 Pro Launch Could Impact Apple’s Business in China


Industry experts have discovered that Huawei’s recent Mate 60 Pro smartphone launch could have a negative impact on Apple’s business in China, according to J.P. Morgan. The main chip inside the Mate 60 Pro is manufactured on a 7-nanometer node, a significant achievement for China’s domestic chip-making industry. Additionally, the phone boasts 5G functionality, offering faster connection speeds.

J.P. Morgan analyst Gokul Hariharan stated, “We believe that Huawei has already been making a comeback in the China domestic smartphone market (initially with 4G models) and this announcement could help Huawei gain further market share domestically. This is likely to halt iPhone market share gains in China and could put some downward pressure on iPhone 15 units post product launch this week.”

The news has already affected Apple’s stock performance, with shares down 1.4% to $178.86 ahead of the company’s anticipated iPhone 15 unveiling. Apple did not immediately respond to requests for comment.

Huawei has been steadily increasing its share of the China phone market, from 7% in Q2 2022 to 13% in Q2 2023, despite its slower 4G phone lineup. This trend suggests positive sales potential for Huawei’s newer 5G phone.

Hariharan also pointed out that rising tensions and geopolitical issues present a risk for technology stock investors. The Wall Street Journal recently reported that China had ordered central government officials at certain regulators to refrain from using Apple’s iPhone or other foreign-branded devices for work. The analyst expressed concerns that trade restrictions between the U.S. and China may intensify following these developments.

“This is likely to weigh down near-term sentiment in the Asian Tech space, given a potential downtick for iPhone shipments, increased risk of restrictions, and limited beneficiaries from Huawei’s supply chain localization,” he added.

It remains to be seen how this situation will play out, but it is clear that Huawei’s Mate 60 Pro launch has the potential to disrupt the smartphone market in China and impact Apple’s business in the country.

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