Huawei plans to increase smartphone prices as production costs have risen by an average of $200 due to memory shortages. Richard Yu, head of the consumer business group, stated that the company will implement modest price hikes to protect profitability.
Counterpoint Research estimates that rising memory costs could lead to the disappearance of approximately 230 million smartphones priced under $200 by the end of the decade. Huawei reported a 36% decline in net profit for the first half of the year, largely driven by increased component expenses.
Despite market challenges, Huawei expects its smartphone sales volume to grow by 8% this year, while other Chinese manufacturers may see declines of up to 34%. The company recently launched the Mate 90 Pro Max, priced at $1640.
The popularity of the Huawei Pura X Max, priced at $1650, increased by 76% following the release of the Apple iPhone Duo, with total sales reaching 1.4 million units. Huawei also aims to sell 1 million units of the Mate XT 2, which starts at $2980.
Huawei intends to expand its flagship presence in Europe and the Middle East. The company also plans to promote its HarmonyOS, which is expected to reach 100 million users in China this year, and its AI accelerators in international markets.
