Huawei launches new foldable smartphone, Xiaomi and Apple set to follow

GUANGZHOU: Huawei unveiled its new flagship foldable smartphone series on Monday, aiming to maintain its dominance in the premium Chinese smartphone market against Apple and Xiaomi. The Mate XT2 series, which folds out twice to create a tablet-sized display, incorporates Huawei's new Kirin 9050 Pro chip. However, the devices are not budget-friendly, with a starting price of US$2,980 (19,999 yuan) and a top model priced at US$3,725 (24,999 yuan).

Sales for the Mate XT2 series commence on September 12, but Huawei faces challenges due to rising memory costs. Richard Yu, an Executive Director at Huawei, acknowledged the significant cost pressure during a press conference. To counteract this, Huawei developed the Kirin 9050 Pro chip with the 'LogicFolding' design architecture, which allows for increased computing power while consuming less electricity, adhering to the Tau Scaling Law principle introduced by the company in May.

Xiaomi plans to release a foldable rival on the same day, while Apple is expected to unveil its latest iPhone series on Wednesday. Experts predict Apple may also showcase a foldable device. Currently, Huawei is the sole major brand offering a tri-fold phone in the market.

However, Huawei's US sales are restricted as the US government labels the company as a national security risk. Samsung Electronics, a South Korean tech giant and the world's leading seller of foldable phones, introduced a tri-fold model in December but discontinued sales after three months. In July, Samsung broadened its foldable lineup by releasing a passport-sized foldable phone.

The Mate XT2 phones boast a redesigned folding mechanism, enhanced water resistance, and a screen feature that restricts the view of nearby individuals. They also present upgraded cameras and deliver 42% better overall performance than their previous series, according to company tests. Xiaomi's shares dropped by 3% in afternoon trading following Huawei's announcement.

In the second quarter, Huawei held a 22.6% share of the Chinese smartphone market, surpassing Apple's 18.1%, according to consultancy IDC. Xiaomi's market share stands at 12.4%. Huawei's dominance in foldable phones is even more pronounced, holding a 68% share in China's foldable phone shipments in the second quarter, as reported by Smart Analytics Global, a US-based research firm.