According to a report by Financial Associated Press on November 26 (reporter Wang Biwei), this afternoon, the Huawei Mate brand grand ceremony was officially held, and Huawei's executive director and terminal BG chairman Yu Chengdong announced on site that the Huawei Mate 70 series has been officially released. Multiple analysts expect that sales of this series of products may exceed 10 million units, making it another important flagship product for Huawei. In this case, the key component suppliers boe technology group (000725.SZ), visionox technology inc. (002387.SZ), ofilm group co., ltd. (002456.SZ), and lens technology (300433.SZ) are likely to benefit.

According to the information from the press conference, the long-awaited Mate 70 series includes four products: Mate 70, Mate 70 Pro, Mate 70 Pro+, and Mate 70RS, starting at 5499 yuan. In terms of configuration, the series continues to use the symmetric design camera module of the Mate series, featuring a high-brightness titanium body, equipped with the second-generation Kunlun glass, and supporting the first satellite paging function.

It is worth mentioning that this series of products also debuts several AI features that are of great interest to the market. Yu Chengdong stated at the press conference that the Huawei Mate 70 will debut nine major AI features, including AI dynamic photos, AI air transfer, and AI messages on the go.

However, analysts believe that the current AI features in smartphones are still difficult to promote replacement purchases. IDC China's research manager Guo Tianxiang told Financial Associated Press that the current mobile phone AI is still in the stage of system-level AI, and the AI functionality is mainly demonstrating how smart agents place orders or search functions in a third-party system. It has not restructured the interaction logic of existing apps and cannot interface with a large number of apps; it is just some fixed scenarios and applications. Additionally, the current solution requires sending the user interface to the cloud for processing, which poses privacy risks.

It is understood that the series models officially opened for reservation at 12:08 on November 18 and will officially go on sale at 18:08 on November 26. As of the time of writing, over 3.3 million users have made reservations for this series of models on Huawei's official store.

Regarding sales expectations for this series of products, Counterpoint senior analyst Mengmeng Zhang analyzed to reporters from Financial Associated Press that compared to the Mate 60 series in 2023, the Mate 70 series launched later, which will have some impact on Huawei's sales in the fourth quarter of 2024, but the pent-up demand is expected to be released in the first quarter of 2025. It is expected that the Mate 70 series will become another important flagship product for Huawei, with shipments expected to exceed 10 million units during its lifecycle. CINNO Research also estimates that with the Mate 60 series accumulating about 13 million units sold in the Chinese market from launch until October 2024, and a total life cycle sales estimate of around 15 million units, the total sales of the Huawei Mate 70 series may also reach the level of 15 million units.

As for suppliers, the localization of parts has already become a major trend in domestic smartphones. Specifically, IDC China research manager Guo Tianxiang told reporters from Financial Associated Press that "the screen has the highest domestic rate at present, and low-end products are beginning to scale up the use of domestic storage; CMOS localization is also increasing. However, SOC localization still needs breakthroughs, and there are also gaps with foreign suppliers for some structural components and raw materials."

After the release of the Huawei Mate 60, there were disassembly videos indicating that the domestic rate of the Huawei Mate 60 reached as high as 90%. According to reports from the Financial Associated Press, several key component suppliers for the Mate 70 are also primarily domestic manufacturers.

In terms of screens, sources revealed that the highest localization rate display panels are still supplied by domestic manufacturers boe technology group and visionox technology inc.

Currently, the market share of domestic phone screens is increasing, with CINNO Research statistics showing that in Q2 2024, the global market shipment of flexible OLED (including foldable) smart phone panels is about 0.16 billion units, of which the shipment of domestic flexible OLED smart phone panels is approximately 94 million units, a year-on-year increase of 79.0%. In the same quarter, the domestic brand flexible OLED smart phone panel localization rate has increased to 98.2%, with boe technology group, TCL Huaxing, tianma microelectronics (000050.SZ), and visionox technology inc. ranking 1st to 4th in market share.

In terms of cameras, sources from the supply chain revealed that ofilm group co., ltd is the main supplier of the camera modules for the Mate 70 series. Last year, there were reports saying that ofilm group co., ltd received most of the orders for the rear camera, front camera, and fingerprint module of the Huawei Mate 60 series, but ofilm group co., ltd did not provide a clear response. Additionally, market reports indicate that will semiconductor (603501.SH)'s subsidiary OmniVision Technology participated in the supply of CMOS image sensors (CIS) products for the Huawei Mate 70 series. Financial Associated Press has sent an interview outline to will semiconductor regarding the authenticity of this information, but no response has been received by the time of publication.

In terms of assembly, sources from the industry chain revealed that lens technology has taken on a large share of the exterior structural and rear cover assembly tasks, which include glass cover plates, DECO, and camera cover plates. It is understood that lens technology has provided exterior structural components and rear cover assembly services for Huawei multiple times.

As for other components, multiple industry chain sources indicated that Lihexing (301013.SZ) continues to supply testing equipment for the Mate 70 and is also a major supplier for Huawei's vehicle inspection system; luxshare precision industry (002475.SZ) is participating in the supply of wireless charging modules, just like with the Mate 60 series.

With Huawei's return, its influence in the smart phone market is regaining momentum. IDC data shows that in Q3 2024, vivo continues to hold the top position in China's smart phone market with an 18.6% market share, while apple and Huawei occupy the second and third positions with 15.6% and 15.3% market shares respectively. In the same period of 2023, Huawei's market share was 11.1%, an increase of 42% year-on-year. The institution also predicts that Huawei's market share in the domestic market will continue to rise next year, especially putting greater competitive pressure on apple, while other Chinese manufacturers will accelerate their overseas expansion and increase their layout in the overseas market.