Apple’s unveiling of the new iPhone 16 failed to impress investors, as the highly anticipated AI features remain in testing mode. The introduction of Huawei’s industry-first tri-fold phone has heightened the competition in the global smartphone market.
Apple’s stock dropped 1.7% on Tuesday, following the launch of the iPhone 16, which integrates hardware-level AI features, including enhancements to Siri and the camera. However, these features will only be available in beta for U.S. iPhones starting next month, which might delay consumer upgrades.
Analyst Laura Martin from Needham noted that Apple’s message regarding the iPhone 16 implied that improvements would come “later this year” or “early next year,” suggesting a more exciting offering in the future.
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Apple has not yet provided a timeline for moving beyond the test phase of its AI features or announced a partner in China for its AI initiatives. This lack of concrete details has drawn criticism in China, where the hashtag “iPhone 16 Chinese version doesn’t support AI yet” has garnered over 11 million views on Weibo. Comments from users include dissatisfaction with the lack of AI features and calls for lower prices.
Despite not increasing the price of the new iPhones, which analysts view as a strategic move given current consumer spending habits, Huawei has entered the spotlight with its Mate XT tri-fold device, priced at $2,800.
Will Wong from IDC noted that while the high price and production constraints may limit the Mate XT’s immediate impact on shipments, it reinforces Huawei’s position as a tech leader and poses a significant challenge to Apple.
Huawei’s Mate XT has already garnered over 4 million pre-orders, offering features such as an AI assistant for text summarization, translation, and editing, as well as enhanced image editing capabilities.
Huawei’s recent smartphone launches, including the Mate 60 Pro, which features a domestically made chip, demonstrate its ability to navigate U.S. sanctions and compete with Apple. In contrast, Apple’s sales in China have declined, with its market ranking dropping from third to sixth place. iPhone shipments in China fell by 6.7% in Q2 2024. Both the Mate XT and iPhone 16 are set to go on sale on September 20.
