Huawei, hailing from China, is set to unveil its counterpart to Apple's anticipated iPhone 16.
The Shenzhen-based tech giant, at the center of a growing tech conflict between Washington and Beijing, is currently experiencing a remarkable resurgence, having launched successful models like the Mate 60 Pro and Mate X5. In August, the company reported impressive increases in both revenue and profit, a feat accomplished despite American sanctions.
The anticipated sales of the Mate XT, a tri-fold smartphone that started pre-orders on Saturday, could serve as further evidence of the company's lasting comeback.
Richard Yu, the head of the consumer business segment, teased potential new items on Chinese social media on Monday, hinting at a 2:30 p.m. Beijing time introductory event the following day, while sharing a partial image of the tri-fold device.
Previously, he described the product as a groundbreaking invention, something other companies had only dreamt of but failed to achieve. After five years of investment and dedication, he claimed, they were turning science fiction into reality.
The product unveiling will take place only hours following Apple's announcement of various new products, including the iPhone 16, its first device specifically designed for generative artificial intelligence (AI).
Amber Liu, a research manager at market analysis firm Canalys, pointed out that Huawei's rapid recovery directly threatens Apple's performance in China, its second-largest market, contributing to more than 20% of its global shipments.
Chinese smartphone manufacturers occupied the top five domestic places in the market for the first time ever in the previous quarter, pushing Apple to sixth place, she noted.
Liu observed that the close timing of Huawei and Apple's product launches signaled the beginning of an intense competition wave in the Chinese premium market. Primary areas of competition will include high-end products, software capabilities, and AI deployment.
Apple announced that generative AI will enable iPhone 16 users to create text and images using natural-language prompts, but it's unclear whether the Mate XT includes any AI features.
Large screen, high cost?
According to analysts, the new phone is rumored to have a double folding structure and a large display size surpassing 10 inches.
Jene Park, a senior analyst at the smartphone foldables practice at Counterpoint Research, suggested that this latest iteration could result in significant changes in the display size of book-style foldables, which currently range from 7 to 8 inches.
Analysts believe the success of the launch will be partially dependent on the phone's price, which has yet to be disclosed. Liu believes it will bear a significant cost due to the high manufacturing expense and premium positioning.
Sales of Huawei's premium smartphones surged by 72% in the first half of 2024, compared to the same period the year before, as reported by Yu in June, highlighting the company's desire to return to the top despite heavy US limitations.
Critics have long argued that Huawei poses a national security risk, suggesting that Chinese authorities could use the company's equipment for spying. However, Huawei has consistently denied these allegations. Despite this, some American allies, like the UK, restricted Huawei's role in 5G network development.
The U.S. embargo prevented companies like Google from supplying Huawei devices with their Android OS, setting back the Chinese firm's smartphone ambitions considerably. Analysts even predicted that Huawei phones would become obsolete.
However, Huawei is now climbing back to the top, venturing into new industries. In 2023, it launched an electric sedan to challenge Tesla's Model S. Moreover, the company has aggressive plans in AI.
Nvidia named Huawei a top competitor in several areas, such as the production of processors for AI systems, earlier this year.
The success of Huawei's upcoming tri-fold smartphone, the Mate XT, could further strengthen its position in the tech business, potentially challenging other competitors in the market.
Despite the high cost associated with the Mate XT's manufacturing and premium positioning, analysts anticipate strong sales due to its innovative design and large display.
