Huawei's MateBook 2-in-1 is expected to achieve annual shipments of 400,000 units, a lot lower than market watchers' expectations of 1-2 million units as Huawei is mainly pushing the device in the high-end enterprise market instead of consumer segment, plus the China-based vendor is still not familiar with the notebook channel and business model, according to sources from the upstream supply chain, adding that the company will need to conquer these issues in order to boost shipments.

Since most existing notebook brands have already been operating in the market for a long time, looking to snatch market share from them is a rather difficult task for a newcomer. MateBook's pricing at US$699-1,599 also makes the device not a friendly choice for consumers, the sources noted.

The sources pointed out that the MateBook's major competitors are Lenovo, Asustek Computer and Acer's 2-in-1s and the device also shares a design similar to Microsoft's Surface. Although Huawei will have a chance to earn a good market share in China, it may not do the same in North America.

Despite the disadvantages, Huawei still has advantages in product design, sales ability as well as resources and budget, making it still a strong player in the industry over the long term, the sources added.