Huawei launched 4G-only P50 series in China. The new models come with Huawei’s latest camera technology and preload Harmony OS. The starting price of P50 series is RMB 4488 (USD 695) at retail, roughly 10% higher than that of its predecessor.

Lack of 5G chipset is an obvious drawback. Our latest consumer survey shows 9 in 10 Chinese smartphone consumers expect to buy 5G next time, up from 36% currently. Other than 65+ age group, 5G is mandatory across all brands. Even entry tier device buyers expect to have 5G for their next smartphone. In this regard, we are sceptical whether consumers are willing to pay premium for a Huawei-branded 4G smartphone in 5G era.

One thing interesting is that “Huawei Imaging” is trademarked in the presentation show during the launch. It remains to be seen whether Huawei will commercialize its imaging capacity in the future. In other words, will it be possible that we might see Huawei imaging solution on devices from other OEMs?

Taking into the consideration of late launch cycle of P50 series, as well as its pricing strategy and its 4G-only air interface, we expect the performance of P50 series would be as half as previous P40 and other predecessor models in best scenario during the launch year.