Chinese giants Xiaomi, Huawei race to get ahead of Apple’s rumored foldable iPhone

Huawei and Xiaomi this week rolled out their latest foldable phones as the Chinese tech giants look to steal a lead on rival Apple, which is rumored to launch its first foldable iPhone on Wednesday.

Xiaomi, the world's third-largest smartphone player, launched the Xiaomi 18 Fold on Monday, a passport-sized device similar to Samsung's Galaxy Z Fold8, which was released earlier this year. Huawei on Monday unveiled the Mate XT2, the third generation of its trifold smartphone, which it pioneered.

Those launches are no coincidence. Apple is holding an event on Wednesday, where it is rumored to be unveiling the first foldable iPhone, a major new product under new CEO John Ternus.

"There is significant pent-up demand for a foldable iPhone within the Apple community," Neil Shah, partner at Counterpoint Research, told CNBC on Tuesday. "Many have refrained from switching to Samsung. Some have switched, but they might come back if there is an amazing foldable iPhone."

Apple could ship 6 million foldable iPhones this year, giving it a 25% share of the global market, according to Counterpoint Research. This share could grow to 40% in 2027, Counterpoint said.

Foldable smartphones continue to see strong growth, even though they are some of the most expensive handsets on the market.

Globally, Samsung, which pioneered the foldable category with its first such device in 2019, will be Apple's main rival.

But in China, Apple will compete against a host of players, led by Huawei, which accounts for more than two-thirds of the foldable market in the country.

Shah said "aspiring Chinese consumers" are likely to want Apple's latest device.

"We will see lots of upgrades from the existing install base in China happening toward the foldable iPhone," Shah said.

After Samsung's latest foldable release in July, there will be plenty of options for consumers to pick from.

"This is not an innocent decision by these vendors," Francisco Jeronimo, a vice president at IDC covering mobile devices, told CNBC.

"They knew Apple was coming up with a foldable, so they're trying to get ahead and, more importantly, trying to make sure that when the Apple products hit the stores, their product is there so consumers can compare."

Huawei and Xiaomi this week touted their own self-designed chips in their foldables.

Xiaomi said the Xiaomi 18 Fold is powered by the XRing O3, its latest smartphone processor, manufactured on an advanced process.

Huawei said its Mate XT2 is the first device to feature a new semiconductor technique it calls LogicFolding, which is designed to move electrical signals on a chip.