Huawei launches new foldable smartphone as competition with Xiaomi, Apple heats up

GUANGZHOU/BEIJING – Huawei launched a new version of its flagship foldable smartphone on Sept 7 as it seeks to defend its lead in the Chinese market for premium handsets against Apple and Xiaomi, both of which are also unveiling new products.

The new Mate XT2 folds out twice to open into a tablet-sized screen and features Huawei’s new Kirin 9050 Pro chip.

The Mate XT2 features a redesigned folding mechanism, improved water resistance as well as an optional screen that prevents people nearby from seeing what is displayed.

It also has upgraded cameras and delivers 42 per cent better overall performance than its predecessor, based on company tests.

Huawei said the chip’s design allows it to deliver more computing power while using less electricity, helping the company overcome US restrictions on access to advanced technology.

Xiaomi is launching a rival foldable phone later on Sept 7. The new handset will run on memory from home-grown champion CXMT and Xiaomi’s self-developed Xring O3 processor.

Apple will unveil its latest iPhone series on Sept 9, with expectations high that it, too, will be unveiling a foldable phone.

Huawei, which does not sell in the US due to sanctions, leads China’s smartphone market with a 22.6 per cent share in the second quarter, ahead of Apple’s 18.1 per cent, according to consultancy IDC. Xiaomi has 12.4 per cent of the market.

Huawei is even more dominant in folding phones, accounting for 68 per cent of shipments in China in the second quarter, according to Smart Analytics Global, a US-based research company.

However, smartphones are headed for their worst contraction on record in 2026, with shipments likely to decline 14 per cent, Counterpoint data shows.

Chinese smartphone makers are among those worst hit, owing to their outsized exposure to budget devices that are least able to digest the cost of surging component prices.

Xiaomi’s profit has declined for three consecutive quarters as the company worked to reduce shipments of unprofitable low-end devices.

Huawei, though still posting shipment growth, also saw its profit decline in the first half of 2026, in part because the company was forced to hoard more components to fend off rising memory costs.

To escape that crunch, most brands are now heavily promoting the premium segments, such as foldables, in order to raise their average selling prices.

Getting out a couple of days before Apple’s splashy new product event on Sept 9 gives brands the chance to own the spotlight at least momentarily.

Expected to be priced at more than US$2,000 (S$2,500), the foldable iPhone will bring new attention to these devices, which Chinese makers and global shipments leader Samsung Electronics have been selling for years.

Apple could grab a quarter of the global foldable market in 2026 and claim the No. 1 spot with a 41 per cent market share in 2027, according to projections by Smart Analytics Global.

“Apple has the world’s biggest premium device installed base. Its foldable will sell well and rapidly grab market share,” Counterpoint analyst Ivan Lam said.

He expects the new handset to spur wider adoption among consumers, with spillover effects that lift demand for rivals’ devices as well. REUTERS, BLOOMBERG