For the first time in history, Huawei became the focus of the industry with its world's first mass-produced tri-foldable phone, the Huawei Mate XT, at a new product launch event held on the same day as Apple's.

The launch of the Huawei Mate XT was no coincidence. The domestic foldable phone market encompasses multiple brands and devices at different price points. For example, the Xiaomi Mix Fold starts at 9,999 yuan; Huawei's more affordable foldable phone, the nova Flip, is expected to retail between 5,000 and 6,000 yuan; and Samsung's W20 5G foldable phone sells for 19,999 yuan.

However, these phones are all dual-foldable. As the first tri-foldable phone, the Huawei Mate XT undoubtedly represents a breakthrough in hardware innovation. More importantly, it showcases Huawei's bold experimentation with the future form factor of mobile devices.

According to market research data, Huawei has consistently shone in the foldable phone market. In the third quarter of 2024, Huawei held a 44.9% market share in foldable phones. The release of the Mate XT will undoubtedly further strengthen Huawei's dominance in this niche market.

In contrast to Huawei's aggressive approach, Apple has chosen a more conservative path. As of 2024, Apple has yet to enter the foldable phone market, a decision based on multiple considerations. Firstly, foldable phones generally come with higher price tags, such as the Huawei Mate XT starting at 19,999 yuan. This positions foldable phones primarily as luxury items for high-end users.

Another challenge facing foldable phones is durability. Despite manufacturers' continuous efforts to improve hinge designs to enhance screen endurance, foldable devices still face a higher risk of wear and tear compared to traditional smartphones. These factors combined make foldable phones more akin to technological toys for early adopters rather than mass-market consumer products at this stage.

Apple, known for its focus on user experience, will likely only consider entering the foldable phone market when the technology is mature enough to support seamless folding without compromising product quality.

High R&D and production costs are also realities that Apple must confront. The yield rate for foldable phones is often lower than that of traditional smartphones due to the more complex manufacturing process. Any flaw in the production chain can lead to the scrapping of entire screens, driving up unit costs.

Furthermore, Apple may still be assessing the true demand and long-term potential of the foldable phone market. As of the second quarter of 2024, shipments of foldable phones in China reached 2.57 million units, accounting for 1.2% of the overall mobile phone market, up from 0.5% in 2021. This indicates that foldable phones remain a niche segment in China.

For Apple, the question becomes whether investing heavily in this niche market is worthwhile based on the return on investment.

Huawei's decision to make the Mate XT the centerpiece of its new product launch event was not just about introducing a new product or driving sales; it was also an integral part of Huawei's brand strategy. Although the tri-foldable phone may not immediately become a sales leader, its uniqueness positions it as a shining star in Huawei's product lineup, attracting high-end users seeking cutting-edge technology.

However, turning the tri-foldable phone into a core business for Huawei will require overcoming numerous challenges. Firstly, the high price tag limits market penetration. Secondly, despite its advanced technology, Huawei must convince consumers of its value proposition to gain market acceptance. While pre-orders for the Mate XT have surpassed 2 million, the subsequent return rate remains to be seen.

Lastly, ecosystem support poses a significant challenge. Tri-foldable phones demand even higher standards of ecosystem support, encompassing software optimization for multitasking and screen splitting, gesture control enhancements, consistent user experiences across folding states, developer tool support, app store promotion, user education, and service assistance.

Moreover, after-sales service and warranty policies must be strengthened to ensure prompt resolution of customer issues. Only by tightly integrating hardware and software can the unique advantages of tri-foldable phones be fully realized, enhancing the user experience.

Regardless, in the realm of foldable phones, Huawei has indeed taken a significant lead over Apple. In a fiercely competitive market, any movement, be it through topic marketing or experimentation, is better than stagnation. Huawei's smartphone sales surged 84% year-on-year in 2023, with an even more impressive 93% YoY jump in the fourth quarter. Globally, Apple sold over 234 million smartphones in 2023, capturing a 20.1% market share and retaining its position as the global sales leader. In China, despite an overall decline in sales, Apple maintained a 20% market share to top the sales chart in the first quarter of 2023, translating to one out of every five phones sold being an iPhone.

Interestingly, Xiaomi shipped 8.5 million units in the first quarter of 2023, a YoY decline of 20% but flat QoQ, with its market share dipping 1 percentage point to 13% YoY yet remaining flat QoQ. Globally, Xiaomi shipped 145.6 million smartphones in 2023, down 3.3% YoY. Could it be that the rivalry between Apple and Huawei ultimately impacts Xiaomi?