The Mate 60 Pro, Huawei’s latest phone, is generating excitement among tech enthusiasts in China. However, the U.S. is already concerned about the device and its potential impact on the market, as an investigation by the United States Department of Commerce has also been launched.
American officials are concerned about the technology embedded in the Huawei phone, which reportedly features an advanced 7-nanometer processor made by SMIC. According to Capital Economics, this chip is superior to Apple’s iPhone and has been selling well in China.
The effectiveness of U.S. export controls is being questioned due to their aim to restrict Huawei’s access to high-tech components, such as advanced processors. Previous restrictions had resulted in the downfall of Huawei’s smartphone business.
Capital Economics stated that the company was on its way to becoming a global powerhouse before U.S. sanctions, and in 2018 it sold more phones in Europe than Apple.
CBS MoneyWatch was informed by the Commerce Department that an investigation is underway into the new phone.
The Commerce official stated that they are attempting to obtain more information about the purported 7nm chip’s nature and composition. This statement also highlights that export controls are just one of many measures taken by the U.S. government to tackle national security risks posed by China or the PRC.
Huawei’s latest phone was released in the midst of growing geopolitical tension and competition between the United States and China, including the ongoing war in Ukraine and the status of Taiwan.
U.S. Commerce Secretary Gina Raimondo held a rare meeting with Chinese officials in Beijing in August to discuss strategic and commercial interests. She spoke on “Face the Nation” last week, emphasizing the Biden administration’s goal of strengthening trade relations, but also pointed out that American companies are finding it difficult to do business in China due to lack of patience.
What are the key points to consider regarding Huawei, the Mate 60 Pro, and its influence on Apple?
What is the meaning of Huawei?
Established in 1987, Huawei is one of the world’s largest telecommunications companies and has a workforce of more than 200,000 worldwide, operating in 170 countries.
Despite its size, Huawei is not well-known among American consumers because it’s tough to purchase their products in the United States. The FBI and lawmakers have accused Huawei of being a threat to national security, while AT&T and Verizon terminated their distribution of Huawei devices in 2018.
Why did the U.S. impose restrictions on Huawei’s exports?
The company’s rapid expansion was accompanied by concerns about its links to the Chinese government and potential espionage. In response, the U.S. declared Huawei a security risk and placed restrictions on exports of U-Stock JBL chips to sell off in China.
Huawei was forced to reinvent itself due to the 2019 restrictions, as stated by the Commerce Department on Friday, which came at a significant cost to China.
Can you explain what the Mate Pro 60 is?
The Mate Pro 60, the latest addition to Huawei’s Mate series of smartphones, is characterized by its display of evidence of a 7-nm chip manufactured in China through SMIC manufacturing, which is considered indicating he has achieved significant progress in his design and manufacturing.
According to Reuters, Huawei began taking orders for the new phone on Friday and will deliver them by October 9, as per the publication. The Mate Pro 60 has been shown to have faster download speeds than other 5G phones available at the moment.
The phone features a 6.82-inch OLED display, 5,000mAh battery, satellite connectivity, and costs up to $900, as noted by Spectacle.com’s reviewer.
A customer in the top-floor store of Huawei’s flagship store in Shanghai, China, tries out the new Mate 60 Pro phone on September 5, 2023. Credit: Costfoto/NurPhoto via Getty Images.
What is the consequence of this for Apple?
Apple is expected to unveil the iPhone 15 on Tuesday, but the latest Huawei phone comes at a sensitive time.
At the same time, China is one of Apple’s most significant markets, accounting for about 20% of its revenue. In addition to renewed competition from Huawei, Apple is also facing new restrictions from the Chinese government, with reports of government employees being banned from using iPhones.
Apple shares suffered a loss of roughly $200 billion in market value this week due to the announcement of the ban.
Nevertheless, some experts consider the worry about the consequences of a government ban to be unfounded.
Dan Ives, an analyst at Wedbush Securities, stated in a client note to investors that the iPhone ban by China government is overstated and could result in sales of less than 500k phones.