Huawei's Tri-Fold Phone Teaser Intensifies China Competition with Apple

On Tuesday, Huawei's website indicated that it had received over 3.3 million pre-orders for its new foldable smartphone, a number that doesn't require any deposit. To put this into perspective, the total global market for foldable phones was around 4 million units in the second quarter of this year, as per research firm IDC. 
 
This impressive feat follows on from several successful smartphone launches since last year and highlights Huawei's resilience amidst U.S. sanctions. It further cements its position against Apple in China, where it has managed to maintain a strong foothold. 
 
Huawei is no stranger to the world of foldable smartphones, having two-way foldables already featured in its product line-up, whose strong sales have helped it claim the title of being the largest vendor of such devices globally, surpassing Samsung Electronics earlier this year. 
 
However, with high costs and limited availability, analysts predict that this latest model will likely serve more as a testament to Huawei’s technological prowess than significantly impacting their sales volume. 
 
Jene Park from Counterpoint Research says, "The upcoming Huawei products are not expected to significantly impact Samsung and Apple's businesses in terms of product quantity." She added that there may be some implications for sales figures within specific Chinese markets due to limitations on product supply. 
 
Despite these constraints, growth within the foldable smartphone market remains robust, with an annual increase of 57% recorded during Q2 resulting in approximately 3.9 million units being shipped worldwide, largely driven by increased efforts by Chinese manufacturers expanding into foreign markets, according to data provided by the IDC consultancy group. 
 
Interestingly though, despite such growth figures, these innovative devices still represent only about 1.3% of the overall smartphone market, which saw shipment volumes reach up to 292.2 million during Q2 alone, indicating significant room for potential expansion if barriers can be overcome, says IDC researcher Will Wong, who pointed out consumer awareness levels remain relatively low along with concerns regarding cost-effectiveness and product value. 
 
Price remains a significant barrier to wider adoption of foldable smartphones. For instance, while the price for Huawei's latest model has yet to be announced, last year’s Mate X5 model still retails at over 10,000 yuan ($1,406) domestically—nearly double the cost of a new iPhone 15. 
 
Alongside this is also the need to address certain technical issues such as screen wrinkling and reduced durability due to increased use of hinges in order for these devices to become more mainstream, says Park from Counterpoint Research. 
 
In conclusion, while Huawei’s impressive pre-order numbers indicate growing consumer interest in foldable smartphones, overcoming key challenges related to affordability and durability will be crucial if they are ever going to represent more than just a niche segment within the broader smartphone market.