On Tuesday, China’s Huawei Technologies unveiled a three-way foldable smartphone as it aims to strengthen its lead over Apple in the world’s largest smartphone market with a unique form factor gaining traction in China.
Just hours after Apple introduced its latest iPhone model, Huawei hosted a launch event for its new Z-shaped foldable smartphone, the Mate XT, set to hit stores on September 20—the same day as Apple’s new iPhone release.
Huawei’s website revealed that it had already received over 3.6 million pre-orders for the Mate XT, though no deposit was required.
For comparison, the global market for foldable phones totaled around 4 million units in the second quarter, according to research firm IDC.
The launch follows a string of successful smartphone releases by Huawei over the past year, highlighting the company’s ability to navigate U.S. sanctions and solidifying its position against Apple in China. Some Chinese consumers have criticized Apple’s new iPhone 16 for its lack of AI features, a point of frustration as Apple has yet to announce an AI partner for China, and its AI software, Apple Intelligence, won’t be available in Chinese until next year.
“Why buy it if you can’t use AI?” a user commented on Weibo, China’s equivalent of X. Another remarked, “Without AI as its main selling point, it should be half the price.”
Huawei already offers two-way foldable phones, and their strong sales in China helped the company surpass Samsung as the world’s largest vendor of foldable phones this year.
However, analysts suggest the new Mate XT, likely to come with a hefty price tag, may be more of a symbol of Huawei’s technological capabilities than a major revenue driver. Limited availability and a high price are expected to restrict its market impact.
“The new Huawei products aren’t expected to significantly affect Samsung and Apple in terms of sales volume,” said Jene Park, an analyst at research firm Counterpoint. “However, there could be some effect on sales in certain Chinese markets.”
The foldable smartphone market grew 57% year-on-year in the second quarter, reaching 3.9 million units, largely driven by Chinese smartphone makers expanding into overseas markets, according to IDC. Despite this growth, foldables still make up just 1.3% of the wider smartphone market, which saw 292.2 million units shipped in the second quarter.
“The average consumer still lacks awareness of these devices, let alone understanding their benefits,” said IDC senior researcher Will Wong. High prices remain another challenge, with last year’s Mate X5 retailing for over 10,000 yuan domestically, almost double the cost of a new iPhone 15.
Addressing issues such as screen wrinkles and reduced durability from additional hinges will also be crucial for the wider adoption of foldables, Park added.
Huawei led the global foldable smartphone market in the second quarter with a 27.5% share, ahead of Samsung’s 16.4%, according to IDC. In China, Huawei’s market share climbs to 42%, surpassing rivals like Vivo and Honor, a former Huawei subsidiary spun off due to U.S. sanctions in 2020.
In the broader Chinese smartphone market, Apple dropped from third to sixth place in the second quarter, while Huawei became the third-largest vendor, buoyed by strong sales of its latest models.
