Despite Huawei's efforts to compete with Apple, analysts believe that chips remain a vulnerability for the company.

• According to Martin Yang, senior analyst of emerging technologies at Oppenheimer & Co., Huawei's chip is approximately two to three years behind the current technological advancements.
• The company is likely to emphasize its unique trifold features rather than downplaying its chip as it launches its new phone.

Despite recent breakthroughs, Huawei's chip capabilities remain a weakness as it tries to upstage Apple's new iPhone with the launch of its own 'trifold phone' on Tuesday.

On Tuesday, Martin Yang, senior analyst of emerging technologies at Oppenheimer & Co., stated that Huawei's chip is approximately two to three years behind the latest technology advancements.

The gap in technology for systems-on-chip (SoCs) that integrate central processing with cellular connectivity is widening because Huawei lacks access to any below 7 nanometer processes, according to Yang. In chip manufacturing, a nanometer refers to the size of transistors on a processor.

A smaller transistor size allows for more to be packed onto a chip, resulting in greater technological advancement.

Last year, Huawei achieved a remarkable milestone with the release of its Mate 60 smartphone, featuring a cutting-edge 7-nanometer chip sourced from China.

Despite U.S. trade restrictions limiting China's access to advanced semiconductor technology, Chinese firms were able to reach the benchmark faster than many analysts predicted.

In China, the largest smartphone market, Huawei has regained market share from Apple due to its recent success.

Huawei has not made a significant chip advancement for its latest phone release, unlike the Mate 50.

According to Yang, Apple's second generation of 3 nanometer processes is already providing a 10% to 15% performance boost on this year's phone compared to last year's first generation 3 nanometer process.

Yang stated that the chip will not be a significant emphasis or marketing highlight for Huawei's upcoming phone this week.

The company is likely to downplay the chip disadvantage of its phone during the launch week and instead emphasize that it is the first trifold phone on the market.

Since Sept. 7, Huawei has been taking preorders for the Mate XT, its foldable phone. As of Tuesday, its website indicates that the phone has already received more than 3.5 million preorders.

Last year, Huawei released the Mate 60 RS, which had respectable reservations, but failed to convert them into actual sales, according to Yang.

He stated that he didn't anticipate real-world shipments in the [3 million range].

On Tuesday, Navkendar Singh of International Data Corporation stated on CNBC's "Street Signs Asia" that although Huawei has dominated in the sales of foldable smartphones, the market remains small due to consumer concerns about cost and functionality.