A report by Nikkei Asia, citing sources familiar with the matter, said early test production has not gone as planned. According to the report, the issues could delay mass production and push back shipments by several months.

“It’s true that more issues than expected have emerged during the early test production phase, and additional time will be needed to resolve them and make necessary adjustments,” one source said.

The problems centre on two key challenges. Engineers are still working to improve hinge durability, an important part of any foldable device. They are also trying to achieve a crease-free display, a common issue with foldable screens.

These are not minor setbacks, as a weak hinge affects how long the phone lasts, while a visible crease changes how the screen feels in daily use. Apple appears to be taking more time rather than rushing a product that falls short of expectations.

The impact is already spreading beyond the company. Suppliers across Asia, including firms in South Korea, Japan and China, have been warned that component timelines may slip. These companies provide key parts such as OLED panels, hinges and specialised materials.

Apple had been expected to launch its first foldable iPhone alongside two upgraded non-folding models in the second half of 2026. That plan is now uncertain. If the current issues continue, the device could miss that window.

Competitors including Samsung, which leads the foldable market with its Galaxy Z series, holds a strong global share. Huawei and Oppo have also released foldable devices, although their reach is still limited in some regions.

Apple’s launch into the segment is widely seen as important. Foldable phones are still a small part of the smartphone market, but shipments grew last year. Even so, they are far behind traditional devices.

Pricing could also affect demand, with expectations placing Apple’s foldable iPhone at the premium end, likely above $1,500, it targets high-end users rather than the mass market.

For now, the company has not commented on the report.

This increase came as leading brands, including Apple, Samsung, and Motorola, accelerated their imports to dodge tariff threats that could have disrupted pricing and demand.

Apple alone shipped $2 billion worth of iPhones from India in March, leveraging its production partners, Foxconn and Tata Electronics. 

This was a historic record for the company and stressed a bigger shift in global supply chain strategies. I find this development unsurprising. 

In recent years, the U.S.-China trade tension has triggered a wave of recalibrations. Tech giants are now leaning heavily into India and Vietnam, seeking more stability and new manufacturing hubs.

The U.S. had pointed to new tariffs on electronic imports in early April, but the Biden administration issued a temporary 90-day suspension. That pause gave companies like Apple some breathing room, but not enough to stall their contingency plans.

“The increase in smartphone shipments in March and early April will help insulate Apple from potential immediate pricing impacts in the U.S. through mid-to-late summer,” said senior research analyst Gerrit Schneemann. 

He added, “Should the tariff situation remain unresolved with China by the time the iPhone 17 ships, we expect India to become the primary provider for U.S.-bound iPhone 17 devices.”

Apple’s sales to distributors and retailers rose by 42% in March. Samsung posted a 4% increase in sell-in, while Motorola, owned by Lenovo, nearly tripled its exports from India. 

The result was that India’s share of U.S. smartphone imports jumped from 16% in the first quarter of 2024 to 26% this year.

This is a global reset in motion and by the June quarter, Apple expects most of the iPhones sold in the U.S. to be sourced from India. 

The strategy is about long-term independence from China’s unpredictable regulatory and political environment. 

This uptick follows a prolonged slump, with foreign smartphone shipments falling for four consecutive months before December’s modest rebound. 

In November alone, shipments plummeted by 47.4% year-on-year, dropping to 3.04 million units from 5.77 million. 

The current increase brought the total number of foreign smartphone shipments to 3.74 million units, compared to 3.72 million in the same period the previous year.

Apple was particularly affected, struggling with economic stress, reduced consumer spending, and growing competition from local brands like Huawei.

Huawei has strengthened its market presence, recording a 24% increase in smartphone shipments in the same quarter. The company now holds a 17% market share, closely trailing Apple’s 13.1 million units sold in China. 

Huawei’s resurgence has been driven by the introduction of smartphones with locally produced chipsets, which have interested consumers, especially those who favour homegrown technology.

Apple, in an effort to retain its foothold in China, has partnered with Alibaba to integrate artificial intelligence features into iPhones sold in China, leveraging Alibaba’s technology to better tend to local preferences. However, this initiative remains subject to regulatory approval.

Analysts are cautious about Apple’s prospects in the Chinese market nonetheless. The upcoming iPhone SE4 is not expected to drive high sales, as previous SE models have had limited impact.

Again, speculation that the iPhone 17 series may rely entirely on eSIM technology is not sitting well with consumers, given China’s limited carrier support for eSIM.

Foreign smartphone brands have also been struggling with economic issues. A downturn in consumer spending, coupled with the economic slowdown, has dampened demand. 

In November, foreign smartphone shipments in China saw a steep decline, plummeting by 47.4% year-on-year to 3.04 million units. This was the fourth consecutive month of declining sales for non-Chinese brands.

Apple responded to these difficulties with a rare four-day promotional campaign, offering price reductions of up to 500 yuan (£55) on its flagship devices.

However, the effectiveness of such short-term discounts remains uncertain, especially as Huawei continues to gain traction in the premium segment.

The new app allows users of Android smartphones, tablets, and foldable devices to access Apple’s premium content, which was initially exclusive.

Previously, Apple TV+ was only accessible to Android users through Google TV, requiring an existing Apple account. With this development, users can now create an Apple account directly on their Android device and subscribe via Google Play billing, with the monthly subscription remaining at $9.99. 

This is expected to increase Apple TV+ adoption, particularly in regions where Android dominates the market.

A Growing Library of Premium Content

Apple TV+ is home to acclaimed original productions such as Ted Lasso, Severance, The Morning Show, Hijack, Masters of the Air, and Killers of the Flower Moon. The service also offers live sports content, including Major League Soccer (MLS) Season Pass, which starts at $12.99 per month or $79 per season, and Friday Night Baseball.

The app includes features such as offline downloads, watchlists, and cross-device syncing, ensuring users can continue watching content seamlessly across multiple devices. However, one of its limitations is the absence of an in-app Store for renting or purchasing movies and shows, a feature available on Apple devices.

Apple’s Expanding Services Business

Apple’s Services division has become an important revenue driver, contributing over $100 billion annually. With the introduction of Apple TV+ to Android, the company is tapping into the global Android user base, which accounts for 72% of the smartphone market. 

Apple is growing its subscription-based revenue streams beyond hardware sales. Despite its reputation for high-quality content, the tech giant has not disclosed viewership figures for Apple TV+. 

However, its impact on the entertainment industry is undeniable. The platform became the first streaming service to win an Academy Award for Best Picture with CODA and secured 10 Emmy wins in 2024 across major categories.

Availability and Rollout

The Apple TV+ app is now available for download on Google Play Store, with the rollout beginning on Wednesday. While this is a rare move by Apple to bring one of its core services to Android, it shows a growing openness to platform expansion, particularly in the competitive streaming market.

This was revealed by the company’s chairman, Liang Hua, during a forum in Guangzhou.

The technology giant, which had reported 704.2 billion yuan in revenue in 2023, had its fastest growth in four years. Liang stated, “In 2024, Huawei’s overall operations will meet expectations, ICT infrastructure will remain stable, consumer business will return to growth, and the smart car solution business will develop rapidly, with annual sales revenue exceeding 860 billion yuan.”

A major factor in Huawei’s growth has been the resurgence of its consumer business. The company saw a strong comeback in the smartphone market after launching new devices in August 2023, featuring locally developed chipsets. 

This helped it navigate U.S. sanctions that had previously restricted its access to advanced semiconductor supplies. By the end of 2023, Huawei had secured a 16% share of the Chinese smartphone market, surpassing Apple.

Apart from consumer electronics, Huawei’s ICT (Information and Communications Technology) infrastructure has been stable, supporting business expansion. 

The company continued its heavy investment in research and development, strengthening its services in telecommunications, cloud computing, and enterprise solutions.

Another area of commendable growth has been Huawei’s smart car solutions business. With the global automotive industry moving towards electric and intelligent vehicles, the company has gained traction with its advanced driver-assistance systems (ADAS) and vehicle connectivity technologies.

Even with current challenges from U.S. sanctions, Huawei’s strategy of localising its supply chain and diversifying its business has enabled it to maintain strong financial performance. 

The company expects continued growth, particularly in emerging technology sectors, as it pushes further to remain competitive in the global market.

The Mate 70 series, launched in Shenzhen today, November 26, 2024, includes a satellite paging system and an upgraded processor that enhances performance by 40% compared to previous models. 

The Mate 70 lineup is powered by the HarmonyOS NEXT operating system, a definitive departure from Android. With better performance, improved connectivity, and a focus on innovation, the series comes with a range of specifications which would bring independence and global competitiveness to Huawei.

Specifications and Features

1. Models and Display
   The Mate 70 series consists of four models: Mate 70, Mate 70 Pro, Mate 70 Pro+, and Mate 70 Ultimate Design.

• Mate 70 Pro and Pro+: Feature a 6.9-inch quad-curved OLED display with LTPO technology, bringing an adaptive refresh rate of 1-120Hz and a high touch sampling rate.
• Mate 70 Standard: Comes with a 6.7-inch flat display, featuring minimal bezels and a single punch-hole camera.

2. Camera System

• Rear Cameras: A 50MP main camera, supported by a 48MP telephoto lens and a 40MP ultra-wide lens.
• Technology: Powered by Huawei’s XMAGE imaging system, enabling advanced features like night mode, variable aperture photography, and 4K videography.
• Front Cameras: Pro models include triple punch-hole cameras with 3D sensors for face unlock and air gesture controls.

3. Battery and Charging

• Pro Models: Built with a 5700mAh battery, an upgrade from the 5000mAh in the previous generation. Supports 100W wired charging and 88W wireless charging.
• Standard Models: Feature smaller batteries with slightly reduced charging capabilities.

4. Performance

• Operating System: HarmonyOS NEXT comes with an upgraded interface, new animations, and improved integration with Huawei’s ecosystem devices. HarmonyOS NEXT, launched for public testing earlier this year, has already attracted over 15,000 applications, with plans to grow this ecosystem to 100,000 apps.
• Gaming: Enhanced Ark engine boosts gaming performance and overall system responsiveness.
• Satellite Connectivity: The Mate 70 is the first mainstream smartphone to incorporate satellite paging, adding reliability in remote locations.

Pricing and Availability

• Pricing:
  • Mate 70: Starting from ¥5,999 (approximately £650).
  • Mate 70 Pro: Priced at ¥6,999 (approximately £760).
  • Mate 70 Pro+ and Ultimate Design: Premium models with higher specifications and pricing starting from ¥8,499 (approximately £930).
• Availability: The Mate 70 series is currently available in China. Huawei has not yet announced plans for a global release.

Market Impact and Huawei’s Strategy

Huawei aims to overcome trade restrictions and these advancements are among its strategies. The Mate 70 series integrates chips manufactured domestically by China’s SMIC, a big win in light of U.S. sanctions on Chinese semiconductor firms.

Patriotism in China has played a role in boosting Huawei’s sales. The company ranked second in the Chinese smartphone market in Q3 2024, shipping over 10 million units. This is a recovery from Q2 2022 when shipments stood at just 4.1 million.

With its flagship Mate 70 series, Huawei has become a top competitor to Apple in China, the world’s largest smartphone market. 

Despite macroeconomic challenges, import restrictions, and volatile currencies in key markets, latest Canalys analysis shows the region experienced an impressive 12% year-on-year growth in shipments, totaling 17.9 million units. 

TRANSSION maintained its leading position in the Africa’s smartphone market, and achieved 9% annual growth, securing a dominant 48% market share.

The company is strategically expanding its footprint, especially in emerging markets, focusing on price bands below US$100.

Samsung, hit by a 13% decline due to challenges in its mid-to-high-end devices, retained second position with 26% market share.

Xiaomi and OPPO’s successful resurgence with impressive annual growth rates of 100% and 259%, respectively were fueled by significant investments, especially in the Egyptian market, which contributed to positive Q3 results.

realme’s iconic Number series helped garner an impressive 11% growth. At its core is the C series which is hailed as the brand’s ‘Hero range’ for its focus on innovative high-spec, low-cost pricing.

“The African market demonstrates strong resilience in demand and supply amid macroeconomic challenges,” said Canalys Senior Consultant, Manish Pravinkumar. “Despite rapid currency devaluation, South Africa’s smartphone market exhibited a remarkable growth of 20%. This surge was fueled by the demand for entry-level devices, particularly catering to the extensive pre-paid segment. Additionally, mid-tier devices experienced heightened demand, the prevalence of load-shedding contributed to this trend, as people increasingly prioritize smartphones with quality screens and robust battery life to keep them entertained during power outages. Nigeria’s smartphone market expanded substantially, with TRANSSION playing a pivotal role by offering entry-level devices and Xiaomi successfully positioning itself as an aspirational brand for many consumers, gaining popularity with products such as the Redmi series A2, Note 12 4G, 12, and 12C. A strategy also successful for Xiaomi in North African countries such as Egypt and Morocco. Egypt experienced double-digit 19% growth in smartphone shipments, signaling vendors have successfully addressed the challenges posed by strict import restrictions in the previous year.”

“Vendors’ local teams are leveraging the strengths of their brand assets and global product portfolios to augment market positions in Africa,” Pravinkumar continues. “TRANSSION, through initiatives such as the Takenow device financing schemes for TECNO and collaborations with Easybuy, has not only boosted sales but also advocated for an increase in Average Selling Price (ASP). HONOR and Xiaomi are making significant impacts by introducing diverse products at accessible price points. This strategic move aims to expedite the transition from basic feature phones to smartphones, injecting excitement into markets. Meanwhile Samsung maintained it’s A-series to drive volume. And, confronted with the challenge of consumers preferring mid-range devices from Xiaomi, OPPO, and realme, Samsung proactively promoted foldable devices to secure a prominent position in the premium segment. Huawei has been collaborating with local software suppliers in South Africa, continually enhancing the usability of HMS and tackling the lack of GMS.”

“While witnessing significant growth in the third quarter of 2023, Canalys foresees limited expansion in the region, expecting single-digit growth in 2024,” highlighted Pravinkumar.

“Channel partners and vendors are grappling with challenges such as currency devaluation, increased import taxes, and government initiatives promoting local production, potentially leading to cost and price hikes. Nevertheless, the availability of device financing schemes from operators and channel partners could significantly enhance accessibility and boost adoption rates. Looking forward, the next few years are anticipated to witness a plateau in 2G, while 4G and 5G are positioned for robust growth. While there is a slight possibility of disruption if governments choose to phase out 2G networks, this scenario is unlikely in the short term.

“Essentially, Africa’s smartphone market narrative unfolds as a compelling story of overcoming challenges with resilience and capitalizing on opportunities through strategic partnerships, channel dynamics, and a transforming consumer landscape.

As the market evolves, vendors must navigate these complexities with agility and foresight to secure a pivotal position in this burgeoning market,” the report reads.

[Featured Image Credit]

Transsion, owners of Tecno, itel and Infinix smartphone brands has entered the top five (5) worldwide smartphone shipment, for the first time.

Experts at the International Data Corporation (IDC) expects a shift in the vendor rankings at the bottom of the stack, as we already see happening in that quarter.

Worldwide smartphone shipments declined 7.8% year over year to 265.3 million units in the second quarter of 2023 (2Q23), according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker.

While this marks the eighth consecutive quarter of contraction as the market struggles with soft demand, inflation, macroeconomic uncertainties, and excess inventory, the rate of decline is slowing compared to previous quarters.

“The good news is that inventory levels are improving and the latest market chatter suggests that by Q3 excess inventory in finished devices and components should clear up,” said Nabila Popal, research director with IDC’s Mobility and Consumer Device Trackers.”

Top 5 Companies, Worldwide Smartphone Shipments, Market Share, and Year-Over-Year Growth, Q2 2023 (Preliminary results, shipments in millions of units):

As inventory levels normalize, we are finally hearing optimism from key OEMs and supply chains and expect the market to return to growth by the end of the year and into 2024.

As the market ramps back up, it is also an opportunity for vendors to gain share. IDC expects a shift in the vendor rankings at the bottom of the stack, as we already see happening this quarter with Transsion entering the Top 5 for the first time.”

China witnessed a year-over-year decline of 2.1% in 2Q23 after five quarters of significant double-digit contractions. While this is better than past quarters, consumer sentiment and spending remain low.

Even the much awaited 618 online shopping festival in June, which was expected to boost sales in China, saw a 6.5% year-over-year drop in smartphone sales.

The other large regions, including Asia/Pacific (excluding Japan and China), the United States, and Europe, the Middle East, and Africa (EMEA), also saw shipments decline by 5.9%, 19.1%, and 3.1% respectively in 2Q23.

“Although the first half of the year has presented many challenges to the market, we believe that there remains plenty of opportunity awaiting in the second half of the year,” said Anthony Scarsella, research director, Mobile Phones at IDC. “The foldable market remains an exciting product to consumers, and the arrival of new models and new vendors joining the race will hopefully translate to wider adoption and lower prices. Moreover, we expect the foldable market to grow nearly 50% in 2023 while the total market remains down.”

“I’m calling on on the tech-sarvy guys. I want somebody that can come up with an innovation and say, “Obi, I have all the features plus more,” he said during an Instagram live video session monitored by TechEconomy.

Recall that Obi Cubana is also a Cofounder of New Age Mobile Concepts Ltd, a maker of New Age Power Bank, phone chargers, and other phone accessories which was relaunched in Lagos few weeks ago.

During the Instagram Live session, he said, “I’ve been wondering, all theese guys that are Tech-savvy, youngsters. I know you guys are out there millions, thousands, tens of you. But I’ve been wondering why you’ve not been able to develop a telephone, a brand of phone. Just like we have Apple, Samsung…this and that.

Captioning his post on Instagram, Obi Cubana added: “So I have this great idea……I need an African to create a smartphone for Africans….and we make it the BIGGEST thing of the decade…..yes we can!!!!”

“Why have we not been able….a black man, African, a Nigerian develop a product, affordable but has all the features like what I’m using to make this live video right now and say, ‘”This made by one of us, for all of us.

“If I see a guy that says he has the concept and wherewithal to develop a telephone, a mobile phone. A guy that says, “This has been made for us by one of us”. And then we look at it. I will sponsor the guy and bring everything that is needed.”

“And then we come up with a rugged, fanciful, beautiful and affordable phone for our people. We will support this person, market the idea, sell the phone and even use part of the proceed to do charity, to save people…to send people back to school”, he said in parts.