Huawei and Xiaomi Launch Foldables Ahead of Apple Event

Huawei and Xiaomi have launched new flagship foldable smartphones just days before Apple is expected to introduce its first foldable device, intensifying competition in the premium handset market [1]. The timing of these releases forces Apple to enter a category where rivals are already scaling hardware designs to capture a market segment that analysts expect to become a critical growth driver for the industry [1, 2].

Competitive positioning and production hurdles

Huawei’s new Mate XT 2 features a trifold design and the company’s proprietary LogicFolding chip architecture [1]. Xiaomi’s 18 Fold utilizes a passport-style form factor and incorporates homegrown silicon, including the Xring O3 processor and memory from Chinese supplier CXMT [1]. These launches arrive as smartphone manufacturers face a 16.7% decline in the global market this year, prompting a shift toward high-margin premium devices to offset rising component costs and broader industry stagnation [2].

Apple’s entry into the foldable space is expected to be significant, with Smart Analytics Global forecasting the company could capture 25% of the global foldable market in its first year, rising to 41% the following year [1]. However, production is currently constrained; supply chain reports indicate Apple is producing only a few hundred units per day due to stringent quality control requirements for hinge performance and surface flatness [2]. This volume falls well short of the tens of thousands of units per day typically required to meet Apple’s internal annual production target of 8 million to 10 million units [2].

Market implications

The upcoming September 9 event marks the first major product launch under new CEO John Ternus, who succeeded Tim Cook on September 1 [2]. While Apple’s foldable is expected to retail for more than $2,000, the company’s massive base of premium buyers is viewed as a catalyst that could expand the entire foldable category through increased retail visibility and consumer awareness [1]. Conversely, the ongoing global shortage of memory and electronic components, exacerbated by the buildout of AI infrastructure, continues to pressure supply chains and push up average selling prices across the sector [2].

What to watch

• Production Scaling: Monitor whether Apple can increase output beyond the current "few hundred" units per day to meet its 8-10 million unit annual goal [2].
• Market Adoption: Observe if Apple’s entry expands the total addressable market for foldables or primarily shifts existing users from competitors like Huawei and Xiaomi [1].
• Component Costs: Track whether the ongoing memory and component shortages force further price increases for premium handsets throughout the remainder of the year [2].

Whether Apple can overcome its current manufacturing bottlenecks will determine if it can effectively challenge the established foldable designs from Huawei and Xiaomi. The success of this launch is critical, as the company looks to the new form factor to trigger a fresh premium upgrade cycle for its flagship product line [2].