Huawei Attempts to Defend Its Positions in the Premium Market with New Tri-Fold Smartphone

Huawei unveiled a new lineup of flagship foldable smartphones on Monday, as the company seeks to maintain its lead in China's premium smartphone market amid competition from Apple and Xiaomi.

The new Mate XT2 series smartphones fold twice and transform into a tablet-sized screen when fully unfolded. The devices run on Huawei's new Kirin 9050 Pro processor.

However, the new models come at a steep price. They start at 19,999 yuan, roughly $2,980, while the most expensive version reaches 24,999 yuan, approximately $3,725. Sales begin on September 12.

According to Huawei CEO Richard Yu, pricing became more challenging for the company due to rising memory chip costs and the introduction of new technologies.

According to the company, the architecture used in the new chip — LogicFolding — allows the device to achieve higher computing performance while consuming less power. Huawei says this approach is part of its so-called "Tau Scaling Law" principle, which the company introduced in May to overcome technology restrictions imposed by the US.

Huawei's new device enters the market with a particularly significant competitive advantage: the company is currently the only major manufacturer selling a tri-fold smartphone to the broader market.

Competition, however, is intensifying rapidly. Xiaomi introduced its own new foldable smartphone on Monday, while Apple will unveil its new iPhone lineup on Wednesday. There is also widespread market expectation that Apple may introduce its own foldable iPhone.

The new Mate XT2 models feature an improved folding mechanism and water resistance. They also include a special screen function that prevents nearby people from seeing information displayed on the screen. According to Huawei, the cameras have also been upgraded, and based on the company's internal testing, overall performance has improved by 42% compared to the previous generation.

Huawei's strengthened position is particularly evident in China's foldable smartphone market. According to Smart Analytics Global, the company captured 68% of foldable smartphone shipments in China in the second quarter.

Overall, Huawei also leads China's smartphone market as a whole. According to IDC, the company held a 22.6% market share in the second quarter, followed by Apple at 18.1% and Xiaomi at 12.4%.

Huawei, however, still faces significant geopolitical restrictions. The company cannot sell products in the US market, as Washington considers it a national security risk.

The unveiling of the new Mate XT2 has already impacted competitors: following Huawei's announcement, Xiaomi's shares fell by about 3% in the afternoon session.