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

On September 7, Huawei unveiled its new flagship foldable smartphone series, the Mate XT2, aimed at maintaining its lead in the premium Chinese market against Apple and Xiaomi, both set to release new products as well. The new phones, featuring Huawei's new Kirin 9050 Pro chip, fold out twice to create a tablet-sized screen. However, they come at a high price, starting from 19,999 yuan (US$2,980) for the most affordable version and reaching up to 24,999 yuan (US$3,725) for the top model.

Prices are a significant challenge due to the sharp rise in memory costs, according to Huawei Executive Director Richard Yu. Huawei's new chip design, LogicFolding, is part of their Tau Scaling Law principle, which aims to deliver more computing power with less electricity, a solution to overcome US restrictions on advanced technology.

Xiaomi will launch a rival foldable phone on the same day, while Apple is expected to unveil its latest iPhone series on Wednesday, with expectations high that they will also introduce a foldable phone. Huawei is the only major brand currently selling a tri-fold phone in China. However, they are banned from selling in the US due to being deemed a national security risk by Washington.

South Korea's Samsung Electronics, the world's biggest seller of foldable phones, launched a tri-fold in December but discontinued sales after three months. They later expanded their foldable offerings to include a passport-sized foldable phone in July. Huawei's Mate XT2 phones boast a redesigned folding mechanism, improved water resistance, upgraded cameras, and a screen feature that prevents those nearby from seeing the displayed content.

They also offer 42% better overall performance than their previous series, according to company tests. Shares in Xiaomi fell 3% in afternoon trade following Huawei's announcement. According to consultancy IDC, Huawei leads China's smartphone market with a 22.6% share in the second quarter, followed by Apple's 18.1% and Xiaomi at 12.4%.

Huawei also dominates in foldable phones, accounting for 68% of shipments in China during the same period, according to Smart Analytics Global, a US-based research company.