Huawei launches new foldable smartphone as competition with Xiaomi, Apple heats up

Huawei launched a new version of its flagship foldable smartphone on Monday as it seeks to defend its lead in the Chinese market for premium handsets against Apple AAPL.O and Xiaomi 1810.HK, both of which are also unveiling new products.

The new Mate XT2 folds out twice to open into a tablet-sized screen and features Huawei's new Kirin 9050 Pro chip.

Huawei HWT.UL says the chip's design allows it to deliver more computing power while using less electricity, helping the company overcome U.S. restrictions on access to advanced technology.

Xiaomi launches a rival foldable phone later on Monday, while Apple unveils its latest iPhone series on Wednesday, with expectations high that it too will be unveiling a foldable phone.

The Mate XT2 features a redesigned folding mechanism, improved water resistance as well as an optional screen that prevents people nearby from seeing what is displayed. It also has upgraded cameras and delivers 42% better overall performance than its predecessor, based on company tests.

Huawei, which does not sell in the U.S. due to sanctions, leads China's smartphone market with a 22.6% share in the second quarter, ahead of Apple's 18.1%, according to consultancy IDC. Xiaomi has 12.4% of the market.

Huawei is even more dominant in folding phones, accounting for 68% of shipments in China in the second quarter, according to Smart Analytics Global, a U.S.-based research company.