Mate Xs: Huawei lost $60 million because of its foldable smartphone

by Jerry

The Mate Xs does not allow Huawei to make a profit. By developing and marketing its second foldable smartphone, the Chinese firm lost between $60 million and $70 million. The manufacturer points to the particularly high production costs of the foldable screen. Despite the sale price of 2499 euros of the mate Xs, Huawei is therefore unable to recoup its costs.

Last February, Huawei lifted the lid on the Mate Xs, a second generation smartphone with a foldable screen. In Europe, the Mate Xs is priced at 2499 euros, 200 euros more than its predecessor, the Mate X. Huawei's flagship is the most expensive foldable smartphone on the market, well ahead of the Galaxy Fold (2020 euros), the Galaxy Z Flip (1499 euros) and the Royole Flexpai (1388 euros).

Mate Xs folding screen production costs a fortune, says Huawei

Despite its high price, the Mate Xs does not allow Huawei to make a profit, explains Richard Yu during a speech with the Chinese press. According to the head of Huawei's mobile division, the 8-inch foldable screen costs a fortune to produce. "Once the cost of the folding screen has been reduced, it will be possible to make a profit," says Yu.

Clearly, the foldable slab is too expensive compared to the final selling price of the smartphone, especially since the Mate Xs remains reserved for a tiny portion of buyers. So far, Huawei has even lost between $60 million and $70 million with its Mate Xs.

Read also: Huawei Mate Xs – the foldable smartphone available for pre-order in France

Huawei has apparently made the decisionto absorb the huge production costs of the foldable smartphone so as not to fall behind the competition and not to inflate the price of its flagship. The Chinese group is expected to be able to recoup its costs in the coming years, when the production and development of foldable screens matures.

Source: MyDrivers

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