The huge success of Mate 60; Huawei is retreating a little from the mobile market

After selling 30 million Mate 60 phones, Huawei has slowed down its production for some reason.

The late summer and early fall of 2023 was an interesting time for the phone industry; Because iPhone 15 and Huawei Mate 60 were introduced at the same time. Despite the specific restrictions that the United States imposed on Huawei, the company showed with the release of the Mate 60 that it continues to thrive even in the shadow of sanctions.

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The state of the mobile market in September 2024 will be even more interesting. iPhone 16 and Mate 70 are expected to arrive at that time. Everyone is waiting to see the new Huawei phone and the artificial intelligence capabilities of the Apple phone.

According to Reuters, Huawei has decided to prioritize the production of artificial intelligence processor compared to premium Mate phones such as Mate 60 Pro, Mate 60 Pro Plus and Mate 60 RS Ultimate. This has caused the speed of making phones and the production volume to decrease, so that Huawei makes a slight retreat.

Huawei uses a joint production line for AI processors Ascend and Kirin, which is the processor of the Mate 60 series. The output of this production line is not satisfactory due to its low efficiency.

Since US sanctions in 2019 cut off Huawei’s access to advanced processor-making tools and hit the company’s mobile business, Chinese customers have turned to domestic alternatives.

Huawei’s Ascend processors are a response to Nvidia’s graphics artificial intelligence models, and the Chinese giant competes with other companies with the Ascend 910B model.