Lenders offer new borrowers cut-price loans at the outset, which is possible only because these inducements are cross-subsidised by existing borrowers.
If these deals fail to attract shoppers and stores are forced to offer further price cuts, it could cut into profit margins, particularly as retailers have been facing rising costs of materials from cotton to gold, retail experts said.
It's the fact that Huawei has the resources to cut margins to the bone and offer a top-of-the-range experience at a mid-market price which may prove more important.
Earlier this year, lower energy prices seemed to offer some prospect of relief: a fall in the petrol price is the equivalent of a tax cut for Western consumers.