Apple is accustomed to dominating the smartphone market each Fall with the launch of its latest iPhones. However, this year, Chinese tech giant Huawei has made a bold move to challenge Apple's supremacy. Shortly after Apple unveiled the iPhone 16, Huawei introduced the Mate XT, a groundbreaking $2,800 smartphone featuring a unique 'tri-fold' design that aims to revolutionize the foldable phone market.
Huawei's strategic timing is evident as the Mate XT will hit stores on the same day as the iPhone 16 release in China, with nearly 3 million pre-orders already secured. This move showcases Huawei's confidence in competing head-to-head with Apple in the smartphone industry, particularly as Apple faces declining iPhone sales in China.
Data indicates that Huawei has been gaining significant market share in China, with a substantial increase in sales compared to Apple's declining figures. Despite facing challenges due to US export controls, Huawei has made a strong comeback, notably with the Mate 60 Pro featuring an advanced chipset sourced from Chinese chip firm SMIC.
Apple, on the other hand, is banking on its new generative AI features, known as Apple Intelligence, to drive consumer interest and trigger an upgrade cycle. However, the delayed China rollout of these AI features until 2025 poses a risk for Apple in the Chinese market, where Huawei's Mate XT is expected to perform well.
While Apple is reportedly exploring innovative form factors for future iPhones, such as horizontal folding 'clamshell' phones, these developments may not materialize until 2026. In the interim, iPhones without AI capabilities could face challenges in China amidst fierce competition from Huawei.
Experts suggest that Apple may struggle to counter Huawei's momentum and persuade loyal Apple users to upgrade, especially in a market with slower economic growth. As Huawei seizes the opportunity to capitalize on its current momentum, Apple finds itself in a challenging position in the Chinese smartphone market.
