Huawei charts cautious global comeback but major challenges remain

BARCELONA — Huawei is dipping its toes back into the international smartphone market, but analysts warn the lingering effects of U.S. sanctions is likely to hamper the Chinese company’s ability to compete with leaders Apple and Samsung.

Over the past few months, Huawei has launched two key devices outside of China. The first in December was the Mate X6, a foldable smartphone, followed by the Mate XT, Huawei’s 3,499 euros ($3,660) trifold phone.

Huawei was looking to stand out from the crowd of similar-looking smartphones at the Mobile World Congress (MWC) in Barcelona, the world’s biggest telecoms trade show. The Chinese firm had a large stand showing off its wares, including the Mate XT.

These expensive devices and Huawei’s presence at a global tech show, underscore the tech giant’s targeted approach, attempting to maintain its brand image as an innovative company while selling high-end smartphones.

“Huawei is still very cautious and conservative with what it believes it can achieve outside China with its smartphone business,” Runar Bjørhovde, an analyst at Canalys told CNBC.

“Bringing Mate XT and X6 abroad is no sign that it will make an international comeback with its smartphone business in the next years. Both of these are priced exceptionally and is instead to maintain its desired brand perception of being a cutting-edge innovator with smartphones and still sell devices to its most wealthy super-fans.”

MWC used to be a show dominated by Huawei, from the sponsorship of the lanyards and badges that attendees wore, to announcing the buzziest product launches at the event.

While Huawei has scaled back some of the glitzier aspects of its attendance, its stand remains very large as it shows off other parts of its business, in particular its telecommunications equipment which helped turn it into one of the world’s biggest tech companies.

In the consumer space, Huawei has maintained some presence outside of China with devices such as smartwatches but its smartphone business remains very limited. The firm is using 2025’s MWC to show off the Mate XT, the first of its kind device with a screen that folds twice.

However, its success in China is unlikely to be replicated with the biggest challenge being Huawei’s lack of access to Google’s Android software, analysts said.

“I don’t think they will be able to return to international markets without the full Google services,” Francisco Jeronimo, vice president for data and analytics at International Data Corporation, told CNBC.

“They haven’t managed to grow market share in the international markets,” he said.

Google’s Android operating system is run by 80% of the world’s smartphones, according to Counterpoint Research. Outside of China, Android device users rely on the Google Play Store, which is Google’s app store, as well as the various apps from the Chrome browser to Gmail.

While Huawei has its own operating system called HarmonyOS, it still does not have the ability to offer Google apps, which the majority of users rely on.

“Expanding the smartphone business outside China will be a huge challenge,” Canalys’ Bjørhovde said.

“Not only because Harmony barely has any active users outside China, limiting its user feedback and app availability, but also because it needs the right device portfolio, operations team, marketing resources, etc. This will take years to rebuild, even with strong success in other device categories.”