Chinese AR (augmented reality) glasses manufacturer XREAL has recently secured a new round of strategic financing valued at $60 million, bringing its total funding to $300 million, according to an exclusive report by Chinese media outlet 36Kr. The report asserted that XREAL’s current valuation has surpassed $1 billion, as indicated by industry analysts.

Why it matters: As a major player in the global AR device sector, XREAL’s devices are considered potential competitors to Apple’s Vision Pro and Meta’s Quest 3. This strategic financing empowers XREAL to pursue vital growth initiatives, such as expanding its AR glasses production.

Details: The new financing, which is dedicated to product R&D (research and development) and the expansion of the firm’s optical production base, will enable XREAL’s AR glasses production to reach two million units per year by 2025, the 36Kr report said.

• XREAL has not disclosed the specific investors behind the new $60 million financing. Previous major investors in XREAL have included Alibaba, Kuaishou, NIO Capital, Yunfeng Capital, Sequoia China, Gentle Monster, Hillhouse Group, Hongtai Aplus, CICCcapital, Shanghai GP Capital, Shunwei Capital, CPE Asset Management, China Growth Capital, and iQiyi.
• XREAL’s Founder and CEO, Xu Chi, has declared that the company aims to deliver wearable augmented reality displays to global audiences, as AR has revolutionized user experiences in gaming, movies, TV, in-car entertainment, displays, and work.
• From Jan. 9 to Jan. 12, XREAL exhibited its latest XREAL Air 2 Ultra glasses during the 2024 CES (Consumer Electronics Show) in Las Vegas, featuring six degrees of freedom (6DoF) via dual 3D environment sensors with computer vision capabilities. 
• The global release of the Air 2 Ultra glasses is scheduled for March, with a starting price of $699, and pre-orders are already available. Despite the increased cost compared to the previous Air headset, which was priced below 500 dollars, the Air 2 Ultra glasses still present a more budget-friendly option than Apple’s Vision Pro, which is priced at $3,499.

Context: The XREAL Air series of products are compatible with a variety of mainstream gaming and streaming entertainment devices, including Microsoft Xbox, Sony PlayStation, Nintendo Switch, Valve Steam Deck, ASUS ROG Ally, iOS, Android, Windows, and Mac.

• On Jan. 4, XREAL announced a total shipment of 350,000 AR glasses since its establishment in 2017. The company claimed to currently hold a 45% share of the global AR market, a statement that came after market intelligence firm IDC confirmed XREAL secured a 51% market share in the global AR segment during the third quarter of 2023.

On Monday, Oppo launched its Find X7 and Find X7 Ultra flagship smartphones in China, emphasizing their innovative camera features. The Find X7 Ultra stands out as the world’s first device to feature dual periscope zoom cameras with a 1-inch Sony LYT-900 sensor, and claims to have the largest telephoto sensor ever integrated in a smartphone. With the Find X7 Ultra, Oppo also becomes only the second domestic brand after Huawei to offer a satellite phone function.

Why it matters: Oppo is hoping to capitalize on consumer excitement for new technology at the dawn of 2024, seeking a competitive edge by introducing hi-spec innovations at a time when China’s mobile phone market is increasingly saturated.

Details: The Find X7 Ultra debuts Oppo’s quad main camera and advanced 1-inch Sony LYT-900 sensor, combining breakthroughs in camera hardware with its HyperTone camera system and pro-grade Hasselblad tuning.

• The Find X7 Ultra packs in four 50MP main cameras, including two equipped with a periscope zoom lens, bridging the zoom gap between optical focal lengths. The 50MP 3x periscope zoom camera features a 1/1.56” Sony IMX890 sensor, an f/2.6 aperture, and a 65mm focal length. This sensor is approximately three times the size of cameras found in major competitors’ phone systems, with Oppo claiming it as the largest telephoto sensor in any smartphone currently on the market.
• The wide camera features an advanced second-generation Sony LYT-900 1-inch sensor, touted as having improved power efficiency compared to its predecessor. With a customized lens with an f/1.8 aperture and optical image stabilization (OIS), it also promises a 50% reduction in reflection, all at a versatile 23mm optical focal length.
• When users need to zoom out, the ultra-wide camera comes into play with its 50MP Sony LYT-600 sensor. This camera delivers expansive and detailed shots at a focal distance of as near as 4cm, thanks to its large size focal length and fast f/2.0 aperture, according to Oppo.
• The Find X7 Ultra also includes software additions like the HyperTone Image Engine, giving users advanced computational photography options and features for high-quality photos.
• The flagship is equipped with Qualcomm’s Snapdragon 8 Gen 3 processor, featuring a large 5,000mAh battery capable of fast 100W wired charging and 50W wireless charging. Its 6.82-inch display offers a 1440p resolution, a maximum refresh rate of 120Hz, and a peak brightness reaching 4500 nits for HDR content.
• The Find X7 Ultra will be available in three colors: black, blue, and brown. Currently, the phone remains exclusive to the Chinese market, with no release planned for Europe or the US. Prices start at RMB 5,999 ($845) for a model with 12GB of RAM and 256GB of storage, going up to RMB 6,999 ($986) for 16GB of RAM and 512GB of storage.

Context: In the third quarter of 2023, the global smartphone market fell 1% year-on-year, to 299.8 million units sold, according to research firm Counterpoint. Today’s top five global phone brands are Samsung (with a 20% market share), Apple (16%), Oppo (14%), Xiaomi (14%), and Vivo (7%).

Xiaomi on Tuesday released a statement refuting an apparent claim made by senior Huawei executive Yu Chengdong that Xiaomi’s dragon bone hinge technology for its foldable phones is a direct copy of Huawei’s dual rotating water drop hinge. Yu, the CEO of Huawei’s consumer department, made these comments during a company event last week; Xiaomi has said the accusation is “seriously inconsistent with the facts.”

Why it matters: One of the key elements of foldable phones lies in their unique hinge design, which directly influences the phone’s folding mechanism and screen creases. The controversy between Huawei and Xiaomi, two of China’s biggest phone brands, reflects intensifying competition in the foldable phone market.     

Details: In the statement, Xiaomi posted detailed comparisons, including the application dates, publication dates, and technical features of relevant patents. Both the design concept and mechanical structure of their dragon bone hinge are completely different from Huawei’s dual rotating water drop hinge, according to the statement, which was posted to the company’s account on the Twitter-like Weibo platform.

• “Some companies directly copy our technology and then claim it as their own invention. The concept of the dragon bone hinge is fundamentally non-existent, as they’ve transformed our double rotating water drop hinge into a dragon bone hinge,” said Yu during an annual Huawei event on Dec.10. “Once competitors make modifications, this technology becomes their own,” he added.
• While he didn’t explicitly name the rival phone brand, Yu’s remarks were widely interpreted as an attack on Xiaomi, which launched its new generation of foldable flagship, the Xiaomi MIX Fold 3, in August and is the only phone brand on the market to use what it terms a dragon bone hinge.
• According to Xiaomi’s statement, the dragon bone hinge was patented on September 18, 2020, and received patent authorization on January 5, 2021. Huawei’s dual-rotating water drop hinge was only publicly disclosed on June 18, 2021, though it was patented on December 13, 2019. 
• Xiaomi’s dragon bone hinge features a “three-level rod, five-component, seven-low-friction design,” the statement continued, while Huawei’s dual rotating water drop hinge is described as a “two-level rod, three-component, four-low-friction design.” 
• Furthermore, Huawei’s current three-level rod patent was applied for on October 29, 2021, and was publicly disclosed on May 5, 2023, but it has not yet entered mass production, according to Xiaomi.
• In the concluding part of the statement, Xiaomi emphasized that Yu Chengdong should adhere to “the basic principles of science” and refrain from misleading the public.

Context: Research firm TrendForce‘s report indicates that the anticipated shipment of foldable smartphones in 2023 is around 18.3 million units, with a year-on-year increase of 43%. Huawei’s estimated shipment of foldable smartphones this year is expected to reach 2.5 million units, according to the same report.

• The Xiaomi MIX Fold 3 set a new record for Xiaomi upon its release, with sales increasing 2.25 times compared to the previous generation, according to the company’s second quarter financial report.
• In the third quarter of 2023, sales of foldable smartphones in the Chinese market reached 1.98 million units, representing a year-on-year increase of 175%, according to CINNO Research. In terms of brand ranking, Huawei occupied the top spot with a market share of 28.6%, while Xiaomi was in sixth place with a market share of 8.7%.

A recent report by Taiwanese media outlet DigiTimes suggests that Chinese panel manufacturer BOE is facing challenges in expanding its OLED (organic light-emitting diodes) supply for Apple’s iPhone 15 models, primarily due to light leakage issues. 

Why it matters: If BOE fails to address the light leakage problem, there is a high possibility that they may lose potential orders for the iPhone 15 and iPhone 16 from Apple.

Details: The current yield rate of BOE’s OLED panels for the iPhone 15 has dropped to 30% on the back of the issue, causing a decrease in production output, according to the DigiTimes report. 

• BOE has been selected to supply OLED panels for the iPhone 15 and iPhone 15 Plus. However, the supplier encountered a problem with light leakage, specifically in the panels designed for the standard models. The issue revolves around the Dynamic Island on the OLED display, where the hole punch and the pill-shaped cutout housing the TrueDepth camera sensor and FaceID are located.
• Given the light leakage issue and potential impact on iPhone sales, BOE may face challenges in expanding orders from Apple, which in turn would impact its revenue. According to industry analysis, BOE was expected to supply 5 million to 15 million panels for the iPhone 15 this year. However, due to lower production yields, the actual supply may be limited to a range of 2 million to 3 million panels.
• As Apple shifts its focus to the next-generation iPhone 16 series, avoiding light leakage is becoming more challenging, especially with larger panels. The iPhone 16 and 16 Plus are expected to feature OLED panels similar to the iPhone 15 and 15 Plus, while the Pro series may sport larger sizes, according to US media outlet Wccftech. The iPhone 16 Pro is anticipated to come with a 6.3-inch display, larger than the 6.1-inch display on the iPhone 15 Pro.

Context: Samsung also manufactures OLED panels for the iPhone 15 lineup, holding a dominant 91% share of the supply from June to August this year, according to DigiTimes. If the issue of light leakage persists, Samsung’s greater efficiency would become a significant concern for BOE in the short term.

• In terms of the foldable panel market, Samsung is anticipated to uphold its leading position during the third and fourth quarters of this year, commanding a 74% market share, according to Korean media outlet Business Korea. While this represents an increase from the second quarter’s 63%, it marks a decline of 17% from the 91% share it held during the same period last year. 
• BOE, which previously held a 4% market share in the foldable panel market during the third and fourth quarters of 2022, is projected to surge to 18% in the same period this year. This growth can be attributed to its supply to Chinese foldable smartphone manufacturers such as Huawei, Honor, and Oppo.

Chinese mobile phone company Honor issued an internal announcement on Wednesday stating that the former Huawei sub-brand plans to optimize its equity structure and attract diversified capital through an initial public offering (IPO), as reported by local media outlet Icsmart. Honor has not announced a timeframe or a location for the upcoming listing.

Why it matters: The announcement comes three years after Huawei was effectively forced to sell Honor in November 2020 to help the sub-brand bypass the restrictions imposed upon Huawei by US sanctions. Bought by a state-owned enterprise in Shenzhen, Honor has since emerged as a leading phone brand in the Chinese market.

Details: As part of its preparations for the IPO, Honor has made adjustments to its board of directors: Wu Hui will serve as the new chairperson, while the former chair Wan Biao becomes vice chairperson.

• Following Xiaomi and Transsion, Honor may become the third domestic phone company to go public, according to Jiemian. Xiaomi is listed on the Hong Kong stock exchange and currently holds a market capitalization of HKD 377.8 billion ($48.87 billion), while Transsion’s market capitalization is valued at RMB 95.6 billion ($13.36 billion). 
• Ever since Honor’s spin off from Huawei, there has been speculation in the industry about a possible listing for the handset maker, including the possibility of a backdoor listing through Transsion.
• Honor resumed allocation of shares around June of this year, primarily targeting distribution partners at the municipal level in each province, according to the aforementioned report from Jiemian. Additionally, Honor has initiated an employee stock allocation program, with high expectations for the company’s listing among its staff.
• At the end of 2022, Honor completed another round of strategic financing, adding six new shareholders, with leading display-panel industry player BOE among them.
• The newly appointed chair, Wu Hui, previously served in the Shenzhen municipal committee office, before later being transferred to work in the Hubei provincial government and the municipal government in Xianning, a city in Hubei. In April 2021, Wu Hui returned to Shenzhen and took on the role of chairman of Shenzhen Environmental Water Group.
• Vice chair Wan Biao was once a key figure in Huawei’s consumer business department. He joined Huawei in 1996 and held various positions such as president of Huawei’s wireless product line, president of its terminal company, and COO of its consumer business department. In November 2020, Wan Biao joined Honor and became its chairperson.

Context: In the third quarter of 2023, Honor secured the top spot in the domestic smartphone market with a shipment share of 19.3%, according to research firm IDC. 

• During July to September of this year, Honor released three foldable devices, namely the Magic V2, V Purse, and Magic Vs2, aiming to establish a strong presence in the high-end phone segment. 
• In the third quarter of 2023, the Chinese foldable smartphone market continued its rapid growth trend, reaching a shipment volume of 1.96 million units, an increase of 90.4% year-on-year, according to the same report from IDC. Honor captured a market share of 15.1%, ranking fourth in this segment.

Oppo launched its latest high-end foldable phone, the Find N3, on Oct. 19, highlighting advances in screen, imaging, security, and system interaction. The 12GB+512GB variant is priced at RMB 9,999 ($1,392), while the collection edition with 16GB+1TB storage costs RMB 12,999 ($1,810). The new device comes in three colors: green, gold, and black. Our team was given a fortnight to review a black 12GB+512GB model.

The Find N3 is a stylish device, albeit slightly weighty in the hand, with a dual high-resolution display, and a processor that plays to its visual prowess. The Snapdragon 8 Gen 2 processor ensures a steady performance, placing it among the top foldable smartphones currently available. 

Mature leathery design

The leather case with a discernible grain offers users a comfortable grip and a pleasant feel. In terms of dimensions, when folded, the device feels hefty both in the hand and pocket compared with other non-foldable devices’ lightweight profiles. However, for a foldable device, the Find N3 surprises with its relatively lightweight, coming in at approximately 239 grams. The device boasts a thin profile, measuring a mere 5.8mm when unfolded and 11.7mm when closed.

In terms of overall appearance, the Find N3 leans towards the classic, giving it a business look. This is an aesthetic geared somewhat towards older generations.

LTPO technology and durable hinges

The Find N3 unfolds to a 7.82-inch screen with a resolution of 2,440 x 2,268 pixels, and the outer cover screen measures 6.31 inches with a resolution of 2,484 x 1,116 pixels. LTPO (low-temperature polycrystalline oxide) technology makes a smooth 1-120Hz dynamic refresh rate possible for fluid scrolling and gameplay, with up to 2,800 nits peak brightness.

Both screens are covered in toughened glass, improving drop resistance and strength. In addition to IPX4 splash resistance, the Find N3 is the first phone to be independently tested to withstand one million folds by TÜV Rheinland, according to Oppo. The phone’s crease is not visible unless you look at it from a certain angle.

Enhanced imaging performance

The Find N3’s camera system is branded by Hasselblad and sets new benchmarks in its category. It features two selfie cameras, with a 20MP camera inside and a 32MP camera on the cover screen. On the back, there is a 48MP LYTIA-T808 sensor from Sony, which is a 1/1.43″ sensor equipped with dual-layer transistor technology. This technology ensures great light sensitivity and ultimately leads to improved image quality.

The device’s day and night time photography capabilities stand out within the foldable phone category, as evidenced by the following images. In portrait mode, photos have a great sense of contrast, even in low light.

Snapdragon 8 Gen 2 powers high-performance gaming

The Find N3 features the Snapdragon 8 Gen 2 with 16GB of LPDDR5X RAM and 512GB. Qualcomm unveiled the Snapdragon 8 Gen 3 at its Snapdragon Summit on Oct. 24 but as no foldable phone currently on the market features the new processor yet, the N3 is the most powerful in its category. Our two-hour test of the mobile game Honor of Kings revealed stable performance without any overheating. Stereo speakers also enhance gameplay.

Users can play the same game on two different screen sizes: unfolded and folded. Although the display size and games have been adjusted to some extent, the gaming experience may feel quite different to what users are used to when the phone is unfolded. Gaming enthusiasts be warned that, folded, it also takes some time to get used to the phone’s thickness.

High-capacity battery 

The Find N3 is equipped with a high-capacity 4,850mAh battery. For reference, the iPhone 15 Pro features a battery rated at 3,274mAh. Our practical tests have shown that the new Oppo phone’s battery life can support a full day’s use even under moderate or high-intensity usage. The phone also supports 67W fast charging technology and can be fully charged in around an hour.

Privacy protection and office functions

The Find N3 offers multiple privacy protection functions, including a security chip with national encryption certification, file encryption technology, and end-to-end cloud transmission encryption. The device is equipped with a button on the side, allowing users to easily switch to “VIP” mode, which disables the camera, microphone, and location permissions in one go. 

On the software interaction front, the Find N3 improves office efficiency by enabling users to directly access files made in Apple’s office trio Keynote, Pages, and Numbers, as well as CAD engineering drawings. This breaks down a barrier between Android and Apple, enabling seamless file sharing.

Conclusion

The Oppo Find N3 performs well in terms of chipset performance, screen quality, camera capabilities, and battery life, setting a new benchmark in the foldable smartphone category. It is just as well that the Find N3 is suitable for business professionals, as its relatively high price excludes many other consumer groups.

Pros

• Thin and lightweight entrant in the foldable category
• Leathery design for a firm grip
• LPTO screen with 120Hz adaptive refresh rate
• Great camera performance for a foldable phone
• Large battery and 67W fast charging technology
• Self-developed security chip

Cons

• Slightly heavy for long-time use and carrying in the pocket 
• Gaming on the device takes some getting used to
• No wireless charging support
• Expensive

Xiaomi Group on Thursday unveiled its new operating system, the Xiaomi HyperOS, and its new flagship smartphone Xiaomi 14 series. CEO Lei Jun said the company’s strategy had moved beyond “smartphone connections to AIoT (Artificial Intelligence of Things)”, and now entailed having the “phone, home, and vehicle all within an ecosystem.”

Why it matters: The Xiaomi 14 smartphone series showcases the Xiaomi HyperOS, an Android operating system that uses Xiaomi’s self-developed Vela system that enables the phone to connect with other AIoT devices. The lineup is touted by Xiaomi as the first flagship smartphone driven by Qualcomm’s latest processor Snapdragon 8 Gen 3, unveiled on Wednesday.

Details: In the next two years, Xiaomi HyperOS will replace its MIUI operating system across every Xiaomi smart device, as the company seeks to build a comprehensive ecosystem.

• Xiaomi plans to invest RMB 100 billion ($13.66 billion) in research and development (R&D) over the next five years, Lei Jun revealed at the launch event. Xiaomi also revealed that in 2022 it had invested RMB 16.2 billion ($2.21 billion), or 0.53% of its national R&D expenditure. 
• Xiaomi HyperOS is a cross-platform operating system that has been in development for seven years, involving 5,000 engineers, according to the company. Aiming to create a “people-vehicle-home” interactive ecosystem, Xiaomi has integrated its self-developed Vela system with a modified Linux system.
• The Xiaomi 14 series comprises the Xiaomi 14 and Xiaomi 14 Pro, both carrying the latest Qualcomm Snapdragon 8 Gen 3 chipset, as well as Xiaomi’s own Loop LiquidCool technology for heat dissipation. Both models feature Leica Summilux optical rear lenses.
• The latest Snapdragon 8 Gen 3, built using TSMC’s cutting-edge 4nm processor, is designed for AI applications and gaming, and comes with enhanced audio and camera features. The Gen 3 offers a notable improvement on its predecessor, being 30% faster and 20% more energy-efficient. Additionally, the chipset supports LPDDR5x memory at speeds up to 4,800 MHz and can accommodate up to 24 GB of RAM.
• Xiaomi has opted for a smaller sensor for the 14 Pro, introducing the Light Hunter 900 coupled with a custom Leica Summilux lens. Despite being approximately 44% smaller than last year’s 13 Pro 1-inch sensor, the new setup is up to 80% brighter, according to Xiaomi.
• Depending on storage requirements, a new Xiaomi 14 will cost from RMB 3,999 ($546) to RMB 4,999 ($683), with the pro version costing between RMB 4,999 ($683) and RMB 5,999 ($820).

Context: At the launch event, Lei also mentioned Xiaomi’s commitment to environmental protection and social responsibility, reiterating a pledge made in August to achieve carbon neutrality and to switch to 100% renewable energy by 2040. 

• According to intelligence firm Counterpoint, Xiaomi ranked fifth place in the Chinese phone market in the second quarter of 2023 with a 14% market share.

Chinese phone maker Oppo released its new generation foldable the Find N3 on Thursday, combining a lightweight folding design with flagship imaging capabilities for the first time. 

Why it matters: Foldable phones may offer flexible displays and portability, but their camera performance has long been a concern for customers comparing them to conventional models. The Oppo Find N3 has ushered in a “new era of foldable imaging”, the company claimed at the launch event.

Details: The camera setup on the Oppo Find N3 features Hasselblad branding and is looking to set a new standard in the foldable category. 

• On the rear, it incorporates Sony’s cutting-edge 48MP LYTIA-T808 pixel-stacked sensor, which is a 1/1.43″ unit equipped with dual-layer transistor technology. Essentially, this sensor boasts a redesigned pixel architecture that enhances light sensitivity, leading to better image quality.
• On the front, the Find N3 offers two selfie cameras: a 20MP camera inside and a remarkable 32MP camera on the cover screen. The device also includes a 48MP 1/2″ sensor paired with a 14mm f/2.2 ultrawide lens with autofocus. In terms of the zoom camera, it features a 64MP 1/2″ sensor with a 3x 70mm f/2.6 stabilized periscope lens, enabling hybrid zoom capabilities of up to 6x or 145mm.
• Under the hood, the Oppo Find N3 operates on the cutting-edge Snapdragon 8 Gen 2 flagship processor, coupled with a substantial 16GB of LPDDR5X RAM and 512GB of storage. It packs a 4,805mAh battery that supports 67W fast charging, achieving a full charge in 42 minutes, according to Oppo.
• The model follows the trend of compact, wide book-style foldable smartphones. On its exterior, it features a 6.31-inch AMOLED display with a resolution of 2484×1116 pixels and a variable refresh rate ranging from 10 to 120 Hz. The screen adopts a 20:9 aspect ratio and delivers a peak brightness of up to 2,800 nits. When unfolded, the Find N3 reveals a larger 7.82-inch display with a resolution of 2440×2268 pixels and a dynamic refresh rate varying from 1 to 120 Hz, along with the same maximum brightness level.
• The Find N3 boasts another distinctive feature in its self-developed Flexion Hinge. This hinge has undergone extensive testing of 1,000,000 folds, the company says, demonstrating the enduring durability and reliability of the foldable hinge over an extended period.
• The standard model of 12GB+512GB storage is priced at RMB 9,999 ($1,366), while the premium edition of 16GB+1TB is priced at RMB 12,999 ($1,776). It comes in four colors: red, black, gold, and green.

Contexts: In the second quarter of 2023, the global market for foldable smartphones witnessed a 10% year-on-year increase, reaching a total of 2.1 million units, as reported by Counterpoint. This growth stands in sharp contrast to the overall global smartphone market, which experienced a significant 9% year-on-year decline in shipments during the same period. 

• Notably, the Chinese foldable smartphone market saw an impressive surge of 64% year-on-year, totaling 1.2 million units. As a result, China now dominates the global foldable smartphone market, holding a substantial 58.6% share.
• On August 29, Oppo unveiled the Find N3 Flip in China, marking it as the world’s first clamshell foldable smartphone, equipped with a trio of cameras on its cover.

Apple is set to become TSMC’s largest customer for the N3E process, with plans to integrate the upgraded 3nm chip technology into its forthcoming iPhone 16 models next year, as revealed by DigiTimes on October 13. The report also mentions that the sales of 3nm chips is expected to account for 4% to 6% of TSMC’s 2023 revenue, amounting to a total value of $3.4 billion.

Why it matters: The development of advanced chips incurs significant costs, particularly in initial stages where 3nm process technology is still maturing and yield rates are low. While most companies cannot afford the high manufacturing costs of TSMC’s 3nm chips, Apple stands out with the capability to drive TSMC’s advanced chip technology forward.

Details: TSMC aims to promote mass production of the second generation of 3nm chips (N3E process) in 2024, with the iPhone 16 series slated to be the first smartphone using N3E technology, according to the exclusive DigiTimes report.

• TSMC’s second generation 3nm node, N3E, offers improved affordability and higher yield rate compared to its predecessor, N3, featured in the A17 Pro chip of Apple’s iPhone 15 Pro models launched in September 2023. The N3E process is specifically designed to enhance chip performance and reduce power consumption in devices.
• TSMC has initiated large-scale production of N3E, with plans to replace the N3 entirely with the upgraded version by 2024, according to insider information from DigiTimes. All major chip manufacturers, except Samsung, are set to adopt the second generation N3E. TSMC has secured orders from various clients, with Apple being the largest among them.
• TSMC is anticipated to gain 4% to 6% of its total revenues in 2023 from 3nm manufacturing, primarily due to substantial orders from Apple for N3 chips powering the iPhone 15 Pro models. Apple’s orders alone are projected to account for up to $3.4 billion in sales for TSMC this year.
• Jeff Pu, an analyst covering companies in Apple’s supply chain, claims that all four iPhone 16 models will feature A18-branded chips. The A17 Pro processor in the iPhone 15 Pro models is a transitional design, and the upcoming iPhone 16 models will all incorporate A18 chips, leveraging TSMC’s N3E technology, he said.

Contexts: In July, TSMC faced efficiency challenges with its new 3nm manufacturing process, achieving a yield rate of only 55%, well below the expected standard. Due to this low yield, Apple opted to pay for qualified wafer batches instead of entering into a fixed rate agreement with TSMC.

• TSMC is expected to further enhance the transistor density of the N3 family with N3P following N3E, according to TSMC. N3P, an advanced process node, will empower chip designers to enhance performance by 5% without increasing leakage, or alternatively, achieve a 5% to 10% reduction in power consumption while maintaining the same speed.

The Indian financial enforcement agency Enforcement Directorate (ED) has arrested four executives involved in the smartphone industry, including a Chinese citizen working at Vivo India, on charges related to illegal remittances, Reuters reported on Tuesday.

Why it matters: Since the border conflict between China and India in June 2020, Indian authorities have increasingly targeted Chinese companies, particularly smartphone manufacturers. The recent arrests, coupled with previous actions such as surprise raids and freezing of funds, indicate a gradual escalation of restrictions on Chinese businesses in India.

Details: Vivo responded to the arrests by expressing deep concern and stating that it will take all available legal measures to address the matter, according to the report. The company said in a statement on Tuesday that it firmly abides by the law at all times.

• Earlier on the same day, two sources told Reuters that four employees from Vivo had been arrested. However, during a court hearing, it was revealed that only one Vivo employee, identified as Guanwen Kuang, a Chinese national, had been arrested. Additional information regarding the investigation remains unclear. The ED’s counsel, Manish Jain, requested a ten-day custody period for the arrested individuals, but the judge granted only three days.
• On Wednesday, the foreign ministry of China stated that it was closely monitoring the alleged money laundering case involving Vivo in India, Reuters reported. The ministry also expressed China’s hope for India to provide a fair, transparent, and unbiased business environment for Chinese companies.
• On July 5, 2022, the Indian ED announced in a statement that it had conducted surprise inspections at Vivo India, covering 23 affiliated companies and 48 business locations. During the search operation, employees of Vivo India, including some Chinese citizens, did not cooperate with the search procedure and attempted to remove the digital devices found by the search team, according to the ED.
• In the statement, the ED mentioned a company related to Vivo India called GPICPL (Grand Prospects International Communication Pvt. Ltd.), which was registered and established in India in 2014 by three Chinese citizens named Zhengshen Ou, Bin Lou, and Zhang Jie. The ED accuses the shareholders of GPICPL of using forged identification documents and addresses during the establishment of the company. After its establishment, Bin Lou registered approximately 18 companies across various states in India, it is claimed.
• GPICPL allegedly transferred a significant amount of funds to Vivo India, according to ED. Vivo India then allegedly transferred approximately 50% of its local sales revenue ($7.87 billion) to overseas destinations, primarily mainland China. The ED states that these transfers were made to create substantial losses for the registered company of Vivo India, in order to avoid taxation in India.
• The ED accuses Vivo of violating India’s Prevention of Money Laundering Act (PMLA). As a result, the authority has frozen 119 bank accounts belonging to Vivo in India, with a total value of approximately RMB 390 million ($53 million). 
• On July 13, 2022, the Delhi High Court in India allowed the unfreezing of Vivo’s bank accounts, provided that Vivo provided a guarantee of RMB 800 million ($110 million) to the banks, according to Icsmart. The court also instructed Vivo to maintain a balance of 2.5 billion rupees ($30 million) in the accounts.

Context: In July 2023, the Indian government requested Chinese mobile phone manufacturers to induct Indian equity partners in their local operations. The companies, including Xiaomi, Oppo, and Vivo, have also been asked to appoint Indian executives in key roles such as chief executive officer, chief operating officer, chief financial officer, and chief technical officer.

• In July 2023, the Indian Ministry of Finance told the Indian parliament that major Chinese smartphone manufacturers, such as Xiaomi, Vivo, and Oppo, had evaded tariffs and illegally transferred at least 80 billion rupees ($980 million) out of India.

Huawei has obtained a smartphone microscope-camera technology patent, with the lens magnifying the photographed object from 20 to 400 times by a minimum distance of approximately 5 millimeters and the phone able to analyze the image for bacteria, according to a recently published report by the United States Patent and Trademark Office (USPTO). 

Why it matters: As competition in the phone market continues to intensify, Huawei has been striving to capture the attention and loyalty of consumers by introducing new features, and will be hoping that its microscope-camera can give it a competitive edge.

Details: At present, Huawei has not announced whether the microscope-camera patented technology will be used in the next generation of its flagship phones, but the patent has already provided details of the microscope lens and how it could be used.

• The advanced feature utilizes two cameras: one regular camera for capturing images and another micro-camera for analyzing hygiene. In the provided screenshot, the phone captures an image that includes an apple and a hand. When put into micro mode, the phone will use voice, text, or other prompts to describe the health status of the object and provide suggestions for maintaining hygiene.

• Huawei’s patent also outlined several use cases for the micro-camera, including food safety assurance, kitchen utensil maintenance, personal hygiene assessment, children’s toys inspections, and pet hygiene monitoring. For example, users could utilize the micro-camera at home to detect bacteria on a vegetable’s surface or to monitor the cleanliness of kitchen utensils and appliances, such as coffee machines and microwaves. 
• Huawei submitted this camera patent application in 2021, according to the USPTO file. The patent description specifically highlights the identification of bacterial quantities in captured images and the provision of hygiene recommendations as particular concerns, especially as the patent was filed during the height of the Covid-19 pandemic.
• In 2021, Oppo introduced the Find X3 Pro, which is capable of magnifying subjects by a maximum of 60 times. But such a function is limited to macro photography instead of microscopic images.

Context: Over 350 companies have obtained licenses for Huawei’s patents through patent pools. Under these licenses, Huawei’s licensing revenue amounted to $560 million in 2022.

• In September, Huawei and Xiaomi announced a global patent cross-licensing agreement that covers multiple communications technologies including 5G.
• In August, Huawei launched the Mate 60 series with satellite call technology, which allows users to make or receive calls without the use of traditional terrestrial signals.

Chinese phone maker Honor on Tuesday released its Honor V Purse, a smartphone designed to resemble a handbag. Using optimized hinges and batteries, the new Honor V Purse is the slimmest foldable phone on the market, with a body measuring 8.6mm in its folded state and 4.3m when unfolded.

Why it matters: Three years on from its forced split with Huawei, Honor continues to try and establish its own brand identity and differentiate itself from other Chinese smartphone makers. Meanwhile, the competition for foldable smartphones is steadily increasing as more manufacturers enter this niche market; in recent weeks, major Chinese players Oppo and Huawei have introduced their own foldable devices, namely the Oppo Find N3 Flip and the Huawei Mate X5. Honor’s “handbag” design may help it stand out in an increasingly competitive market.

Details: While the Honor V Purse’s design is certainly eye-catching, its record-breakingly thin body has meant compromises have been made on performance. 

• The V Purse is powered by the Snapdragon 778G. Qualcomm released this mid-range chipset in May 2021 and updated it to the Snapdragon 7s Gen 2 on Monday. The phone’s use of an older generation of chips means that the V Purse is unlikely to be the first choice of those seeking high-performance gaming capabilities.
• In its folded state, the phone measures 156.5 x 74.7 x 8.6mm and weighs 214g. For comparison, the iPhone 15 Pro Max is 159.9 x 76.7 x 8.3mm and 221g. 
• The device offers a 7.71-inch 2K OLED display with a peak brightness of 1,600 nits,  2,160Hz high frequency PWM dimming, and a 90Hz refresh rate. The silicon-carbon batteries provide a capacity of 4,500mAh, which can last for around eight hours of regular usage.
• Designed to be worn like a handbag, the phone comes with a strap or chain and can be customized with different wallpapers on its outer screen. Honor is also selling a leather phone case to complete the purse feel.
• The V Purse comes in three color options: gold, blue, and black. The 16GB RAM smartphone provides two storage variants, 256GB and 512GB, which are priced at RMB 5,999 ($822) and RMB 6,999 ($959) respectively.
• At the product launch, Honor’s CEO Zhao Ming presented a set of data for foldable phones showing that global shipments of the devices exceeded nine million units in 2021, accounting for 4% of the high-end phone market. Shipments of foldable phones are predicted to exceed 100 million units in 2027, and make up 39% of high-end phone sales by that time, according to the data presented by Zhao. 
• Zhao also refuted recent reports that Honor is set to return to the Huawei fold. Zhao labeled Honor’s former parent company “a respected competitor” and said that competition between the two brands was a positive for the industry.

Context: In August, market intelligence firm IDC released a report that indicates the foldable phone market in China has experienced rapid growth, albeit from a low base. In the first half of 2023, 2.27 million foldable phones were shipped, a year-on-year increase of 102%.

• In the second quarter of 2023, the shipment of foldable phones in China reached 1.26 million units, an increase of 173% year-on-year. The leading five brands were Huawei (with a 43% market share), Vivo (19.7%), Oppo (15.9%), Samsung (8.9%), and Honor (7.2%).

Chinese telecoms giant Huawei is set to complete a month of high-profile statement-making moves with its autumn product launch on September 25, with the company confirming the event on Chinese microblogging platform Weibo on Thursday. The date marks the anniversary of the return to China of Sabrina Meng (Meng Wanzhou), Huawei’s chief financial officer, who was under house arrest in Canada for three years due to an extradition request from the US, where she faced fraud charges.

The announcement comes after Huawei’s much-hyped surprise launch of pre-sales for its Mate 60 Pro phone, during the visit to China of US Secretary of Commerce Gina Raimondo. The phone features a self-developed Kirin 9000S chip that uses 7nm technology despite US sanctions aimed at limiting China’s chip-developing capabilities. 

Why it matters: Huawei is hoping to re-establish itself in the mobile phone market after three years of US restrictions. The autumn launch also pits the company against two major Chinese phone manufacturers, Xiaomi and Oppo. 

Details: The launch of the new Mate series means that Huawei, Oppo, and Xiaomi have now all updated their flagship phones ahead of November 11, a major shopping festival in China. 

• Oppo launched its latest foldable offering the Find N3 Flip on August 29, the day Huawei started pre-sales of its Mate 60 Pro without warning. The following day, trending topics on Weibo were dominated by discussion around whether the Huawei Mate 60 Pro was 5G-capable or not. Huawei unveiled the Mate 60 Pro+ and Mate X5 foldable on September 8, coinciding with the official sales release of the Oppo Find N3 Flip.
• Some industry analysts have speculated that Huawei picked these dates for maximum marketing value. It was not the first time that Huawei appears to have picked a strategic date. On August 23, several industry sources said Huawei planned to hold a product launch event on September 12, the same day as Apple’s latest product launch.
• Huawei may have invested heavily in promoting its brand and products on Weibo over the last two weeks. Various hashtags related to Huawei products have featured prominently on the platform’s trending topic list, for instance #HuaweiMate60 (1.5 billions views and 238,000 discussions), #HuaweiMatex5 (600 million views and 40,000 discussions), and #HuaweiProductLaunch (200 million views and 29,000 discussions). Discussion figures are a combination of  posts, likes, comments, and forwards. 
• Xiaomi has been discreetly preparing to release its annual flagship Xiaomi 14 series at the same time. The device will be the first Android phone powered by Snapdragon 8 Gen 3 on the global market. On Wednesday, sources told IThome that Xiaomi will release its Xiaomi 14 series in early November, with products positioned in a similar manner to the iPhone 15 Pro/Pro Max. Orders placed with online and physical stores have increased by 60% compared with the same period last year, the IThome report added.
• There has been no official announcement regarding products Huawei will showcase at its upcoming launch event, though there has been speculation that the firm may introduce the Mate 60 series and Mate X5 foldable. The centerpiece of the event will be the unveiling of the Kirin 9000S 5G processor, according to local media outlet IThome.

Contexts: Huawei has enjoyed a wave of nationalistic support in China, with backing for its new products from numerous official channels and state media accounts on social media. 

• On Tuesday, Martin Yang, an analyst from US-based financial firm Oppenheimer, said that Huawei’s new flagship phones may lead to a decrease in iPhone shipments in 2024 by 10 million units.
• On Thursday, Huawei increased its 2023 mobile phone shipment target to at least 40 million units, according to industry sources.

On Tuesday, Huawei launched pre-sales of its Mate 60 Pro flagship phone on its official website without any advance publicity and two weeks before the official launch event, catching the domestic smartphone industry off guard and triggering heated online discussions. Currently, consumers can directly purchase one of a limited batch of Mate 60 Pro models with 12GB+521 GB storage, priced at RMB 6,999 ($960). This is the first time in Huawei’s history that the company has started the sale of the annual flagship before the product launch event and was reportedly in response to online leaks in advance of the device’s official unveiling in mid-September. 

Huawei did not disclose any specific details about the processor, leaving many Chinese citizens curious about the rumored return of its 5G connectivity. Currently, as far as the multi-party test results are concerned, the peak network speed of the Mate 60 Pro meets 5G network speed standards.

Why it matters: In 2019, the US government imposed a trade ban on Huawei, citing national security concerns. This move barred the company from purchasing advanced chips and using Google services for its new smartphones, causing Huawei’s smartphone sales to plummet. However, the Mate 60 Pro model, which reportedly incorporates a self-developed 5G processor, could pave the way for Huawei to recapture some of its lost share of the smartphone market.

Details: On Tuesday, the total number of Huawei Mate series mobile phones shipped worldwide reached 100 million units, according to a post from Huawei’s Weibo account. The company said that to celebrate this milestone, it was launching the Huawei Mate 60 Pro Pioneer Program, giving customers the chance to try out the latest flagship device in advance.

• Following the official release, thought to be taking place on Sept. 12, consumers will have the option to purchase the Mate 60 Pro either in physical stores or online on Vmall. Many Chinese tech bloggers have already tested the new device firsthand, confirming that its internet speed can reach up to 5,00 Mbps, similar to the speed of the iPhone 14 Pro.
• The software benchmark platform AnTuTu identified the Huawei Mate 60 Pro processor as the Kirin 9000s, Huawei’s self-developed chipset. The Kirin 9000s is designed with a 12-core configuration using a 2+6+4 architecture. It consists of two A34 cores, six customized A78AE cores, and four A510 cores. The highest clock speed it can achieve is 2.62GHz. Notably, it obtained an AnTuTu benchmark score of 699,783, surpassing the iPhone 12 Pro’s score of 683,146. For comparison, the AnTuTu benchmark score for the iPhone 14 Pro is 935,157 for overall performance.
• The new model’s CPU performance outperformed the Snapdragon 888, although it did not quite match up to the Snapdragon 8 Gen 1 and Snapdragon 8+, according to the same report from AnTuTu.
• In another noteworthy feature, the Mate 60 Pro offers support for satellite calls and messaging, albeit likely limited to China. The device uses China’s Tiantong-1 satellite system for its satellite calling feature, enabling users to make phone calls without relying on conventional terrestrial signals. 
• The Huawei Mate 60 Pro also features a 6.82-inch OLED screen with a screen resolution of FHD+ 2720 x 1260 pixels. It is equipped with a triple rear camera system, comprising a 50MP main camera with an adjustable aperture (ranging from f/1.4 to f/4.0), a 48MP 3.5x telephoto camera (with f/3.0 aperture and macro mode), and a 12MP ultrawide lens.

Context: In the second quarter, the top five smartphone brands in the global market were Samsung with a 20% market share, followed by Apple at 17%, Xiaomi at 12%, Oppo at 10%, and Vivo at 8%, according to Counterpoint.

In June, news emerged that Huawei will potentially come back into the 5G smartphone space by the end of 2023. This information apparently was provided to research firms anonymously from “industry sources including Huawei’s suppliers”. Huawei would not comment on the news, and neither would SMIC, the fab Huawei is using.

But what would a 5G phone using SMIC N+1 7nm process look like? Could Huawei reach its 2019 peak again? Who would buy such a phone? Is there any hope for Huawei’s handset future?

The past

In the not-so-distant past, Huawei handsets were the second best-selling brand in the market. In 2019, Huawei handsets accounted for roughly 15.6% of global handset sales, beating Apple but falling just short of Samsung. This amounted to nearly 241 million Huawei phones being sold that year.

Most of these phones – not all, but definitely the high-end phones – used Huawei’s own Kirin application processor chips. They were 5G enabled, ran Android, were fabricated at TSMC on the latest process nodes, and very rarely got anything but positive reviews. At the time, Huawei and HiSilicon had access to the latest EDA tools from Synopsys and Cadence, the latest IP from Arm among many many others, and full access to the Google ecosystem for the export market.

The present

Since 2019, Huawei and HiSilicon have lost access to all these suppliers to varying degrees. No access to properly supported EDA tools and foreign fabs has meant it has moved flagship phones over to Qualcomm as it can no longer manufacture its Kirin AP. Restrictions have also meant its phones are now limited to 4G as it is not allowed to buy 5G-enabled chips and is not able to produce them either. Using Qualcomm chips still means Huawei sells capable phones like the Mate 50, but it is the lack of Google services that means its products are now difficult to recommend in Western markets, even if they do take nice pictures of the moon. 

Even in China, where Google services do not exist, Huawei’s phone sales plummeted in 2020 and 2021, with the brand dropping out of China’s top five. But now, in 2023, Huawei’s sales have increased by 76% year-on-year in Q2 bringing the brand into joint fifth place with Xiaomi at around 13% of the China market. In a market where all other brands (other than Apple) are losing sales, Huawei is somehow managing to increase its own at the expense of BBK, its previous subsidiary Honor, and Xiaomi. 

Why anyone would buy a worse phone at the same or more expensive price can only be down to marketing and a sense of national pride, as although its phones are good, so are Oppo’s and Vivo’s – and they have 5G. Whatever it may be, Huawei has obviously done a great job at reviving its phone brand in the last year within China. Maybe aftermarket 5G enabling Huawei smartphone cases have helped.

The future

So let’s say the rumors are true. Huawei will have its 5G phone by the end of the year using its own chip. Unlike TSMC EUV 7nm, SMIC has only been able to achieve its 7nm through multi-patterning, basically doing multiple lithographic exposures to get the desired resolution. I expect SMIC’s approach will result in low yields and have limited capacity, meaning the resulting chips could potentially be more expensive. This could be compounded by the fact that Huawei handset APs are usually for internal use, not to be sold to other phone brands, so there is limited scale compared to Qualcomm or MediaTek. One could envision Huawei allowing other brands to use it to help SMIC scale up, but how would its performance compare to Qualcomm and MediaTek? Would other brands even want to buy it if it cost more and performed worse?

This is clearly very strategic for China, and would be a big win, but it puts SMIC in a difficult position. Historically it has always kept its head down, but announcing such a feat could put it in the spotlight for further sanctions and equipment it needs to expand its mature node capacity.

Perhaps the chip isn’t the key factor to Huawei’s future global success. I feel it will certainly become a successful brand in China. China-designed chips, China-manufactured chips, and a China-made OS are all very potent selling points in the market. From a global perspective,  it would still have a worse chip, even compared to other Chinese brands, but more importantly, no Google services, which is a killer for most of the rest of the world.

This will be a win for Huawei and for China, but Huawei won’t become the Huawei of 2019 any time soon. In my experience, HiSilicon has always had a great chip design team, but now apparently using its own EDA tools – and I suspect still some Western tools (supported or not) – along with a new process at SMIC rather than TSMC, means this chip won’t be world beating and potentially not commercially viable unless yields and scale are improved. For now, this will be a domestic play.

Huawei achieved sales revenue of RMB 310.9 billion ($43 billion) in the first half of 2023, with a year-on-year increase of 3.1%, according to its H1 business results announced on August 11. During the first half of this year, the Chinese telecom giant’s net profit rate reached 15%, in contrast to the mere 5% achieved in the same period last year. Huawei attributed the rising profits to its enhanced management, improved operational efficiency, strategic sales adjustments, and product optimization. The company launched the flagship phones P60 series, Mate60 series, and foldable MateX3 in H1.

Notably, Huawei’s revenue from its consumer business (terminal devices) in the first half of 2023 increased by 2.2% year-on-year, reversing the downward trend observed since 2021. 

Why it matters: Huawei’s phone business has experienced a relatively tumultuous trajectory in recent years, primarily due to the stringent chip sanctions imposed by the US since 2019. According to company data, in the first half of 2021 and 2022, the revenue growth of Huawei’s consumer business was -47% and -25.4%, respectively. While the 2.2% increase in consumer business revenue signals a turnaround for Huawei, the growth is still relatively modest. The figures come at a time when Huawei has been trying to regain its market share in the mobile phone business, while simultaneously exploring new directions and growth prospects for other business departments.

Details: Sabrina Meng, the rotating chairperson of Huawei, described the company’s business performance in the first half of the year as “stable”, according to Beijing Business Today. Huawei’s business structure comprises five key components, which include its ICT (Information and Communications Technology) infrastructure business, terminal devices, digital energy, cloud services, and the newly added smart vehicle segment.

• In the first half of 2023, the ICT infrastructure business led Huawei’s positive results with a revenue of RMB 167.2 billion ($23.12 billion). The firm’s terminal business generated revenue totaling RMB 103.5 billion ($14.31 billion), while the cloud services and digital energy services garnered RMB 24.1 billion ($3.33 billion) and RMB 24.2 billion ($3.35 billion), respectively. However, Huawei’s car business, which was established in 2019, only achieved a relatively modest revenue of RMB 1 billion ($140 million).
• Next year, Huawei will launch a comprehensive range of commercial 5.5G network equipment aimed at facilitating the commercial deployment of 5.5G technology, the company revealed at the Mobile World Congress Shanghai 2023 in June.
• Huawei did not disclose the detailed shipment figures for its smartphones. According to a July report by IDC, Huawei has reclaimed its position among China’s top five smartphone brands in terms of revenue, with a year-on-year rise of 76% in domestic sales in the second quarter of 2023. Huawei’s return to prominence can be attributed to the impressive sales performance of its P60 series and foldable Mate X3 model, according to the report.
• Launched on August 4, Huawei’s self-developed operating system HarmonyOS 4 saw over one million downloads in three days, according to the company. The HarmonyOS ecosystem currently includes more than 700 million connected smart devices, said Richard Yu,  the CEO of Huawei’s consumer department. 
• In July, Huawei announced the launch of its Pangu Models 3.0 along with AI cloud services. This offering comprises a set of pre-trained models that can be quickly customized for various businesses. Currently, Pangu models are being used across multiple sectors, such as finance, manufacturing, pharmaceutical R&D, coal mining, and railways.
• Aito, the car brand co-developed by  Huawei and Cyrus, saw sales decline significantly, according to its latest results. Despite recording monthly sales of 12,000 units last October, according to Beijing Business Today,  this figure plummeted to fewer than 3,000 units in February and March. 

Context: Huawei has maintained its substantial investment in R&D as it strives for a new growth point. In 2022, the company’s R&D expenditure was approximately RMB 161.5 billion ($22.33 billion), accounting for 25.1% of the company’s annual revenue, according to its 2022 annual report.

Xiaomi is spinning off a premium smartphone brand it created for users in India as an independent company, a company executive announced on Friday.

Why it matters: The Beijing-based smartphone maker began its multi-brand strategy in 2018 in a bid to target different user segments and drive growth for its biggest business. Smartphones accounted for 60% of the company’s revenue in the third quarter.

• Xiaomi sub-brands also include gaming phone Black Shark, budget phone brand Redmi, and Meitu, a smartphone brand it licensed from a selfie app maker.
• The Poco brand has produced just one phone, the Rs 20,999 (around $295.6) Poco F1, which debuted in 2018 with the aim to take on high-end players in India such as Samsung, Huawei, and Apple.
• Xiaomi is the biggest smartphone vendor in the country holding market share of roughly 26% as of the third quarter of 2019. Redmi phones are its most popular offerings in India.

Details: Xiaomi global vice president Manu Kumar Jain said in a tweet that Poco had “grown into its own identity” and will become independent from Xiaomi.

• “Poco F1 was an incredibly popular phone. We feel the time is right to let Poco operate on its own,” he said.
• Details of the split have not been disclosed. Xiaomi did not immediately reply to TechNode’s inquiries on Sunday.
• The Poco brand had a team of more than 300 employees working on research and development in Xiaomi’s Shenzhen headquarters, according to a VentureBeat report in 2018 citing company executives.
• The Poco team borrows resources from its parent whenever it deems fit and leverages Xiaomi’s logistics and services infrastructure, the report said.

Xiaomi’s Q3 growth slows amid dwindling smartphone sales, Huawei competition

Context: Xiaomi reported in November the company’s slowest-ever quarterly revenue growth since its July 2018 listing on the Hong Kong stock exchange. It has decelerated in the face of aggressive competition from rival Huawei in China’s saturated smartphone market over the past few quarters.

• The company’s revenue in the third quarter rose to RMB 53.7 billion (around $7.8 billion) from RMB 50.9 billion the same period the year before, a 5.5% year-on-year increase.
• The world’s fourth-largest smartphone maker split off its Redmi smartphone line in January 2019 in a bid to present Xiaomi as a premium brand.

Chinese smartphone maker Xiaomi is building a “smart plant” in Beijing to manufacture its flagship handsets, company chairman Lei Jun said at an event on Thursday, with production to begin at the end of December.

Why it matters: The manufacturing plant is a first for Xiaomi, the fourth-largest smartphone maker in the world.

• The announcement comes on the heels of a $21 billion state-backed fund the government established on Monday to boost the country’s manufacturing industry.
• Xiaomi currently depends on original equipment manufacturers (OEMs) such as BYD and Foxconn to produce the millions of handsets it sells every year.

Details: The plant will be capable of producing 1 million smartphones during the initial operation phase, Lei said at the World 5G Conference in Beijing, which the company later said would last one year.

• The so-called “smart plant“ will utilize technologies such as autonomous production lines, 5G-powered robots, big data, and cloud services to increase productivity, Lei said.
• The plant will be able to produce 60 smartphones per minute, and will cover 187,000 square meters, Lei added, an area equivalent to around 35 American football fields.
• The company shipped some 122.6 million smartphones last year, meaning that devices produced by its in-house plant will only produce a small fraction of its smartphone output.

Context: In March, Xiaomi announced its cooperation with Shenzhen-based OEM BYD to mass-produce the Mi 9, the company’s flagship handset launched in February.

• In a 2014 interview with Chinese media outlet Caixin, Lei stated that Xiaomi would not build its own manufacturing plant because the company was focused on smartphone research and development (R & D).
• “Why don’t we let the best manufacturing plants work with us?… I don’t think R & D-oriented companies could do well in manufacturing, nor do I think manufacturing-oriented companies could do well in R & D,” (our translation) Lei said.