The mobile phone industry has seen some exciting developments in late summer and early fall of 2023, with the release of the iPhone 15 line and Huawei’s 5G-capable Mate 60. However, Huawei’s production of the Mate 60 line has been slowed down for a reason that may surprise you.
Huawei’s focus on AI has led to a prioritization of production, with the company choosing to prioritize its AI chips over its premium Mate 60 phones. This decision is driven by a high demand for Huawei’s AI chips, which are being used as an alternative to US giant Nvidia’s AI chips in China.
The production slowdown is a result of low yield rates at the facility that produces both Huawei’s Ascend AI chips and the Kirin chips that power its smartphones. The US sanctions in 2019 limited access to advanced chipmaking tools, leading to increased demand for domestic alternatives like Huawei’s Ascend AI chips.
This prioritization has led to reports of Huawei’s inability to meet heavy demand for the Mate 60 line, despite reportedly selling more than 30 million units. As we look ahead to September, when both the iPhone 16 series and the Mate 70 will be presented, it will be interesting to see how these developments impact the competitive landscape of the mobile phone industry. Stay tuned for more updates on Phones Canada!
