Huawei has made a bold statement in the foldable smartphone industry with the launch of its Mate XT, the world’s first tri-foldable smartphone. Priced at €3,499 ($3,662), the device was globally unveiled in Kuala Lumpur, nearly five months after its initial launch in China. Despite unprecedented US technology sanctions, Huawei has re-emerged as an innovator, competing against Samsung and other foldable device manufacturers.

However, steep pricing, software limitations, and supply chain hurdles pose challenges to its success in the international market. This article analyzes Huawei’s technological strides, geopolitical constraints, competitive position, and the future of the foldable phone industry.

Huawei's Mate XT: The Industry’s First Tri-Foldable Smartphone

Huawei’s Mate XT is the thinnest foldable phone to date, boasting a 3.6mm thickness and a 10.2-inch display, making it comparable to an Apple iPad in screen size.

Key Features of the Huawei Mate XT
Tri-Foldable Design: Unlike traditional foldables, it features three mini-panels that fold twice.
Ultra-Thin Build: 3.6mm thickness when unfolded, making it the thinnest foldable phone in the market.
Large Screen Experience: A 10.2-inch unfolded display enhances usability for productivity and entertainment.
Despite these technical advancements, analysts caution that its steep price and software ecosystem constraints could limit its global market appeal.

Huawei’s Resurgence Amid US Technology Sanctions

Huawei has faced severe restrictions since 2019, when the US government cut off its access to American technology, including Google services and critical chip components.

Key Challenges Huawei Overcame
Loss of Google Mobile Services (GMS): Without access to Google Play Store, YouTube, and other Android ecosystem features, Huawei's global market share declined significantly.
Restricted Access to Advanced Chips: The ban on US semiconductor technology forced Huawei to develop its own chips and rely on Chinese suppliers.
Geopolitical Tensions: US restrictions were imposed on national security grounds, while China accused the US of protectionism, aiming to suppress Huawei's global competitiveness.
Despite these barriers, Huawei has managed a strong comeback, especially in the Chinese market, where it holds a 49% share of the foldable phone segment.

Market Position and Competitive Landscape

Huawei has made significant strides in foldable phone innovation, but it still trails behind Samsung globally.

Current Market Share in Foldable Phones (2024 Estimates)

In China, Huawei is the dominant force in the foldable phone market, with nearly half of total shipments.
Globally, it lags behind Samsung, which holds a 33% share, but its aggressive innovation strategy could help narrow the gap.

Pricing Challenges: Can Huawei Compete at €3,499?

At €3,499 ($3,662), the Mate XT is not designed for mainstream adoption. Experts suggest that its high price point limits its appeal compared to other foldables in the market.

Pricing Comparison of Foldable Phones (2024)

Key Takeaways:

Huawei's Mate XT is priced at more than double the Samsung Galaxy Z Fold 5, raising concerns about mass-market adoption.
Foldable devices are expected to become more affordable over time, but Huawei's high pricing strategy positions it as a niche product.
Limited software and app support in international markets further diminishes its value proposition for non-Chinese users.

Geopolitical Tensions: The Impact of US Sanctions

Huawei has been at the center of the US-China trade war, with Washington blocking its access to advanced semiconductors and key supply chain technologies.

Effects of US Technology Restrictions on Huawei
Loss of Qualcomm & Google Services: Huawei phones lack 5G chips from Qualcomm and do not support Google Mobile Services, making them less competitive outside China.
Global Suppliers Prohibited from Working with Huawei: US trade restrictions prevent even non-US companies from supplying chips to Huawei if they use American technology.
China’s Response: The Chinese government has invested heavily in domestic semiconductor production, aiming to reduce reliance on foreign suppliers.
While Huawei has developed its own chipsets, they are still behind top-tier Snapdragon and Apple processors in terms of performance and efficiency.

Future of Foldable Phones: Where Does Huawei Stand?

Despite short-term pricing and supply chain constraints, the foldable phone market is expected to grow exponentially.

Market Forecast for Foldable Phones

Key Growth Drivers:

More brands entering the foldable market, increasing competition and reducing prices.
Improvements in durability and hinge technology, making foldable devices more mainstream.
Apple’s potential entry into the foldable segment, expected to drive mass adoption.
Can Huawei Maintain Its Lead?
If Huawei can overcome international supply chain hurdles, it could expand beyond China and compete globally.
Its innovation in tri-foldable screens gives it a first-mover advantage, but high pricing and lack of Google services hinder widespread adoption.
Apple's rumored entry into the foldable market could change the landscape, putting pressure on Huawei and Samsung to accelerate innovation.