Recently, Huawei Consumer Business CEO Richard Yu said that the Mate Xs foldable phone has caused Huawei to lose USD 60-70 million.

The most expensive of folding screen mobile phones is the screen, because the product yield rate is limited, and the cost is very high.

Manufacturers also need to specifically adapt the system to the screen, and the research and development costs have gradually increased.

So, why did Huawei make a loss-making transaction? What can Mate Xs folding screen mobile phone bring to Huawei? Donews discussed this in an article.

Why is Mate Xs so expensive?

Huawei Mate Xs is the second folding screen mobile phone launched by Huawei. It is an upgraded version of the Mate X series. It uses an 8-inch screen on the front and 6.6-inch and 6.38-inch screens when folded.

It is worth mentioning that the Mate Xs uses a double-layer aerospace-grade polyimide flexible material, and the unit price is enough to be comparable to gold. The bottom is the OLED display, and this screen alone can be comparable to an Android The complete price of the flagship model is now available.

In order to solve the heat dissipation problem of mobile phones, Huawei has also designed a layer of graphite heat dissipation material under the folding screen to allow it to conduct heat across the screen to achieve a balanced heat dissipation effect.

In this way, it can be well adapted to this model to exert better performance, and it is precisely because of the upgrades made on Huawei's screen, that this Huawei model has been huge in terms of durability and experience. Promotion.

In addition, the "eagle wing shaft" used in this model uses alloy components made of rare zirconium liquid metal as the core material, which is even stronger than titanium metal alloys.

Huawei Mate Xs is not only very high-end in terms of screen design, it is also equipped with Huawei's best Kirin 990 processor so far, supporting 5G functions.

It is also equipped with a 55W super-fast charge and a large battery with a capacity of 4500mAh, which is 21% longer than the previous generation Mate X series. These upgrades are enough to justify its higher price.

From the perspective of product positioning, Huawei Mate Xs is its most high-end model. Apart from cost issues, it is also a concept model with advanced design. It is difficult to carry out due to the impact of production capacity and yield. Mass production.

Nowadays, if you want to buy this model, it is basically out of stock. Even if you have yellow cattle, you have to increase the price by at least 10,000 yuan. It is completely in a situation of no price.

Why does Huawei need to continue to roll out folding screen phones?

People who follow Huawei know that Huawei's branded mobile phones have become more and more expensive in the past two years. This is a brand marketing strategy adopted by Huawei.

The price is getting higher and higher, which shows that the brand value of Huawei's mobile phones is gradually increasing, and its gap with Samsung and Apple is further narrowing.

This is a necessary step in Huawei's overall strategic planning. At this time, it is very important for Huawei to launch a folding screen mobile phone with price, performance and gimmick.

In comparison with Samsung, Huawei's folding screen phone is more mature in design, but its performance configuration is not bad at all.

Does this already show that Huawei has the strength to compete with Samsung in products?

Even if this is just an impression to the outside world, it is enough.

Therefore, even if the current Mate Xs is sold at a loss, Yu will continue to do it. This is not a question of profit, but a question of the future development of the product. He can't make concessions on this point.

Besides, according to Yu, if Huawei can persist for two years and continue to upgrade its products, it will certainly be able to occupy a certain market share in the folding screen mobile phone market, and after reducing product costs and increasing production capacity, profits Came.

Besides, it is inestimable to simply increase the brand value it brings.

Folding screen phones will become the trend

So as smartphone manufacturers continue to improve, will folding screen phones become the trend?

First of all, if a product is to become a popular product, the price should not be too expensive, at least it should be cheaper than the current price. If it can be reduced to about 10,000 yuan, I believe there will be more people willing to spend money to buy;

Secondly, whether the folding screen mobile phone can maintain its leading position in design for a long time, and constantly carry out internal upgrades is also a very important indicator.

Because of the price and capacity issues, it is difficult to buy a folding screen mobile phone on the market, people's curiosity will continue, and expectations for folding screen mobile phones will become higher and higher.

It is larger than the traditional mobile phone screen, but it is more portable than the tablet computer, the public attention is also high enough, naturally it is easy to become a popular product.

Huawei's emphasis on folding screen mobile phones is due to various reasons. On the one hand, it can reflect Huawei's technical strength.

On the other hand, it can also improve its brand image and pave the way for its entry into the higher-end model market, so even if it is a loss-making transaction, Yu has already calculated the gains and losses.