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

GUANGZHOU: Huawei unveiled its latest flagship foldable smartphone series on Monday, aiming to maintain its dominance in the Chinese premium handset market against competitors such as Apple and Xiaomi. The new Mate XT2 series features a twice-folding design that expands into a tablet-sized screen. These devices are powered by Huawei's cutting-edge Kirin 9050 Pro chip, which offers enhanced computing capabilities while consuming less energy.

The phones in the new Mate XT2 series start at a price point of 19,999 yuan (US$2,980) with the highest tier priced at 24,999 yuan (US$3,725). However, the rising cost of memory has posed significant challenges for Huawei. Richard Yu, an executive director at Huawei, acknowledged during a press conference that the company had invested heavily in new technology, leading to increased costs.

The new foldable phone series is equipped with Huawei's LogicFolding design architecture, which is part of their Tau Scaling Law principle. This principle was introduced in May to help Huawei overcome US restrictions on advanced technology access. Xiaomi plans to launch a rival foldable phone later on Monday, while Apple is expected to unveil its latest iPhone series on Wednesday, adding to the anticipation surrounding foldable smartphones.

Currently, Huawei is the only major brand offering a tri-fold phone. However, the company is currently barred from selling in the US, as Washington has deemed it a national security risk. South Korea's Samsung Electronics, the world's largest seller of foldable phones, launched a tri-fold model in December, but reportedly discontinued sales after three months. In July, Samsung expanded its foldable offerings with the introduction of a passport-sized foldable phone.

The Mate XT2 phones feature an improved folding mechanism, better water resistance, and a screen design that prevents nearby individuals from viewing the displayed content. Additionally, they boast upgraded cameras and deliver a 42% performance improvement over their predecessor series according to Huawei's tests. Shares in Xiaomi dropped by 3% in afternoon trading following Huawei's announcement of the new series.

Huawei holds a 22.6% share of the Chinese smartphone market in the second quarter, ahead of Apple's 18.1%, according to consultancy IDC. Xiaomi accounts for 12.4% of the market. Huawei's dominance in the folding phone segment is even more pronounced, with the company accounting for 68% of foldable phone shipments in China during the second quarter, as per Smart Analytics Global, a US-based research company.