Even as Apple’s (AAPL) new iPhone 16 series is set to hit stores, including in China, Chinese smartphone giant Huawei announced its latest trifold smartphone priced at over $2,800. In fact, Huawei’s new smartphone, Mate XT, had already racked up pre-orders of more than 3.5 million by midday Tuesday, according to the company’s website. In-store sales of the Huawei smartphone are likely to begin on September 20.
Details of Huawei’s New Smartphone
Specifically, Huawei’s Mate XT includes a range of AI features, such as text translation and cloud-based content generation. Huawei is positioning the Mate XT as part of its comeback strategy after being hit hard by U.S. sanctions in 2019, with further restrictions imposed in 2022 that limited access to advanced U.S. chips.
Moreover, Huawei’s Mate XT will be available in red and black, with prices ranging from RMB19,999 ($2,809) to RMB23,999 ($3,371).
AAPL Unveils Its iPhone 16
Meanwhile, Apple unveiled its highly anticipated iPhone 16 on Monday, highlighting new AI-driven features to boost upgrades amid slowing smartphone sales. However, the company faced criticism in China due to the lack of immediate AI support, with the hashtag “iPhone 16 Chinese version doesn’t support AI yet” gaining 11.33 million views on Weibo, the Chinese social media platform.
To address this issue, Apple plans to roll out its AI features, branded as Apple Intelligence, through a software update next month, though Chinese users won’t have access until next year.
Huawei Gives Tough Competition to AAPL
In addition to the product launches, Apple is facing growing competition in China from local companies like Huawei, a key player in one of the world’s largest smartphone markets. In Q2, Apple dropped out of the top five smartphone vendors in China for the first time, according to market research firm, Canalys. Domestic brands took the lead, with Huawei ranking fourth, shipping 10.6 million units, while Apple shipped 10 million iPhones during the second quarter.
Is Apple a Buy or Sell Today?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 25 Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 23.8% rally in its share price over the past year, the average AAPL price target of $249.48 per share implies a 12.9% upside potential.
