Huawei Teases Launch of New Smartphone, High-End Model Anticipated

A logo for Huawei is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. (Reuters)
A logo for Huawei is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. (Reuters)
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Huawei Teases Launch of New Smartphone, High-End Model Anticipated

A logo for Huawei is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. (Reuters)
A logo for Huawei is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. (Reuters)

Chinese tech giant Huawei has started allowing customers to register their interest in an upcoming smartphone model it has yet to describe, stoking anticipation that the latest version of its high-end P series phones is on its way.

The company jumped back into the premium smartphone market last year with its Mate 60 series, a launch celebrated by state media as a triumph over US sanctions on the firm. The launch has also been blamed for a steep decline in Apple's iPhone sales in China.

Speculation has built up in recent months that Huawei will soon launch the P70, which is expected to, like the Mate 60, contain an advanced China-made chip.

Huawei's P series has advanced cameras and is known for its sleek design, while the Mate series, also high-end, emphasizes performance and business features.

A Thursday product launch for a smart car model and laptop did not mention phones, disappointing legions of fans who complained online. But on Friday, checks made by Reuters at three Huawei stores in Beijing found that interested buyers could register to receive information about a phone without making a deposit.

Registered customers will be notified about the phone's specs and colors in due course, sales staff said.

Huawei did not immediately respond to a request for comment.

The Mate 60, notably launched during a trip by US Commerce Secretary Gina Raimondo to China, did not involve any prior advertising or disclosure of specifications, prompting some users and companies to tear down the phones as they sought to work out its capabilities.

"Huawei kills two birds with one stone," Will Wong, an analyst with research firm IDC, said of this tactic. He noted that the firm could maintain a lower profile amid US-Sino trade tensions while generating an air of mystery and excitement over the launches.

Archie Zhang, a smartphone analyst at Counterpoint Research, noted that the availability of stock has been a significant constraint for the Mate 60 and would likely be so for the P70 as well.

Huawei has had to slow production for Mate 60 phones due to production constraints and the need to prioritize manufacturing of artificial intelligence chips, sources have said.



Intel Shares Fall as Dour Forecasts Overshadow CEO’s Turnaround Promises

The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
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Intel Shares Fall as Dour Forecasts Overshadow CEO’s Turnaround Promises

The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)

Intel's shares fell more than 8% on Friday as the company's weak revenue and profit forecasts overshadowed new CEO Lip-Bu Tan's strategy to revitalize the embattled chipmaker.

Years of bad decisions have left the struggling American chipmaking icon trailing in the lucrative artificial intelligence industry, while a raging Sino-US trade war casts doubt on near-term demand for its PC processors.

Tan on Thursday gave glimpses of his plans to reanimate Intel's culture of innovation by focusing on core engineering, stripping away unnecessary administrative work and cutting workforce.

"Intel is so huge that shifting its course is like turning a battleship – it cannot be done on a dime," Evercore ISI analysts said.

Tan did not provide much detail on how he will restore Intel's leadership position in manufacturing, nor on his plans to attract more external customers to the company's foundry, J.P.Morgan analysts said.

Tan remains focused on the contract manufacturing business and has recently met rival TSMC'S CEO to discuss how the two companies could collaborate.

Executives said first-quarter sales were boosted by customers stockpiling chips as growing tariff tensions between the US and China have made buyers wary of future purchases.

Intel could also stand to benefit if China introduces certain exemptions on US imports given the company's large presence in the Asian country, Ben Barringer, global technology analyst at Quilter Cheviot, said.

AI STRATEGY IN QUESTION

Tan's comments about sharpening Intel's existing products to best suit emerging AI trends have sparked questions on how the company plans to get ahead in the booming artificial intelligence sector and challenge market leader Nvidia.

"Intel needs to streamline fast – they have a lot of investments to make to catch up in AI," Stifel analyst Ruben Roy said.

Historically, Intel has relied on buying startups to further its AI ambitions. Other than Mobileye which Intel spun out a few years ago, the other deals didn't help the company gain much traction.

"Intel should have always had its own internal solution, but it missed the boat and tried to acquire its way into AI," Anshel Sag, principal analyst at Moor Insights & Strategy, said.

One of Intel's biggest missteps was failing to capitalize on the booming demand for AI chips, allowing Nvidia to dominate the market.

Intel now faces an uphill battle in challenging AI heavyweights as it lacks the same level of GPU intellectual property, which is essential for AI workloads, Barringer added.

The company's stock has gained 7.2% so far this year, outperforming Nvidia and Advanced Micro Devices, which have fallen nearly 20% each.

Intel, however, trades at a higher 12-month forward price-to-earnings ratio of 31.37 versus 22.70 for Nvidia and 19.24 for AMD.