In a recent press conference, the CEO of Huawei‘s customer Business, Yu Chengdong, stated that the cost of flexible displays on foldable smartphones are too expensive at the moment. This means that it is virtually impossible to make a profit.
Huawei had recently launched the Mate Xs, which is the successor to the first foldable smartphone from the company and features various improvements. Both the devices carried a hefty price tag and are generally considered premium grade high end devices that only enthusiasts would buy. With a price tag over 10,000 Yuan (over 1400 US Dollars), one could afford even afford high end desktops or laptops at this range.
During the press conference, Yu Chengdong was asked if the price of the foldable phones be about the same as an ordinary phone in the near future. To this, the senior executive responded saying, “I think we need more than a year, maybe a year and a half or two years.” He even mentioned that the cost of this kind of product is extremely high and that the company is losing money.
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According to Yu Chengdong, the cost of making foldable smartphones like the Mate Xs is so high that there is virtually no way to make a profit. However, the reason Huawei is still focusing on expanding the production is due to the fact that its demand is impressively larger than expected, despite the 16,999 Yuan price tag (roughly 2,400 US Dollars).
For those unaware, the Huawei Mate Xs is an upgrade over the original Mate X. It features the new Kirin 990 5G SoC with various improvements to performance and battery life. The new designs also enhance the durability of the device and makes it a better foldable handset overall with an improved hinge mechanism as well.
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(Via)
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