Huawei's Tri-Fold Phone Challenges Apple's Dominance in Chinese Market

Apple faces challenges in Chinese market against Huawei's tri-fold phone

The U.S.-China technology war is playing out in the smartphone market in China, where global rivals Apple and Huawei released new phones this week. Industry experts say Apple, which lacks home-field advantage, faces many challenges in defending its market share in the country. The biggest highlight of the iPhone 16 is its artificial intelligence system, dubbed Apple Intelligence, while the Huawei Mate XT features innovative tri-fold screen technology. But at a starting price of RMB 19,999, about $2,810, the Mate XT will cost about three times as much as the iPhone 16. According to data from VMall, Huawei's official shopping site, nearly 5.74 million people in China preordered the Mate XT as of late Thursday, 5½ days after Huawei began accepting preorders. But in a survey conducted on the Chinese microblogging site Weibo by Radio France International, half of the 9,200 respondents said they would not purchase a Mate XT because the price is prohibitive. An additional 3,500 said they are not in the market for a new phone now. "I suggest that Huawei release some products that ordinary people can afford," a Weibo user wrote under the name "Diamond Man Yang Dong Feng." The iPhone 16 is not available for preorder until Friday, but some e-commerce vendors in China have promised to deliver the new devices to consumers within half a day to two days of sale. In the competition between Apple and Huawei, iPhone 16 has some inherent disadvantages, said Shih-Fang Chiu, a senior industry analyst at the Taiwan Institute of Economic Research. "Apple's strength is information security and privacy, but this is difficult to achieve in the Chinese market, where the government can control the data in China's market to a relatively high degree. In the era of AI mobile phones, this will bring challenges to Apple's development in the Chinese market," Chiu said. Apple's AI service on its iPhone 16 will roll out at a gradual pace in different languages, first in English and other languages later this year. The Chinese version will not be available until 2025. There are other challenges Apple faces as well, Chiu added, such as regulatory controls, consumer sentiment favoring local brands and weakening spending power amid China's economic slowdown. According to Counterpoint Research's statistics, Huawei held a market share of 15% in the second quarter of 2024, surpassing Apple's 14% market share. That compares with Apple's 17.3% share in 2023 as reported by the industry research firm International Data Corporation China, or IDC China. Ryan Reith, the program vice president for IDC's Mobile Device Tracker suite, said in a written response to VOA that the iPhone 16 has not made significant hardware upgrades and that AI applications alone are not attractive because consumers have GPT and other AI solutions. AI applications are also another hurdle. Analyst Chih-Yen Tai said iPhone 16's AI services involve personal data collection, information application and cloud computing, which will require collaboration with Chinese service providers. That, along with the ban on Chinese civil servants and employees at state-owned enterprises from using their iPhone at work in recent years, will affect the sales of Apple products, said Tai, the deputy director of the Center for Science and Technology Policy Evaluation at Chung-Hua Institution for Economic Research in Taipei. "China's patriotism has led to a strong number of preorders" for Huawei's tri-fold phones, Tai said. "The competitors in China will sell the idea [to consumers] that iPhones will soon be edged out of the premium smartphone market. So, in the next stage, the affordable iPhone versions will be the key to whether it [Apple] can return to China or its previous glorious sales era," Tai said. Tzu-Ang Chen, a senior consultant in the digital technology industry in Taipei, said use of Huawei's HarmonyOS operating system surpassed that of Apple's iOS in China in the first quarter of this year, representing China's determination to "go its own way" and create "one world, two systems." "The U.S.-China technology war has extended to smartphones," Chen said. "IPhone sales in China will get worse and worse, obviously because Huawei is doing better, and coupled with patriotism, Apple's position in the hearts of 1.4 billion people will never return." He said that as China seeks to develop pro-China markets among member countries of the Belt and Road Initiative in Southeast Asia, the Middle East and Africa, China-made mobile phones may become their first choice.

Huawei's $2,800 Tri-Fold Phone Has The Potential To Eat Apple's Lunch In China: Here Is How It Compares To iPhone 16 - Apple (NASDAQ:AAPL)

On Tuesday, after Apple Inc. AAPL launched its iPhone 16 series, China's top smartphone maker Huawei Technologies Co. announced Mate XT that will launch on Sept. 20. The tri-fold smartphone has a starting price tag of $2,800, which is significantly expensive compared to the iPhone 16 Pro Max's $1,199 for 256 GB storage. The move has marked Huawei's ramped-up efforts to challenge Apple's smartphone dominance, making it a subject of curiosity about Mate XT. Here are a few things that users should know about Huawei's latest smartphone: Price And Availability Huawei's Mate XT, the world's first tri-fold smartphone, comes in three storage options with prices ranging from $2,800 to $3,371. The iPhone 16 series has a starting price of $799 for the basic version and iPhone 16 Pro Max, the tech giant's most premium model starts with $1,199 for its minimum storage option. Both devices are set to hit the market on Sept. 20, but they cater to different consumer needs and preferences. See Also: Mark Cuban Praises Elon Musk's AI Chatbot Grok For Answering Kamala Harris' POV On Immigration: 'I Think It's Accurate' Innovation Vs. Familiar Form The Mate XT features a unique tri-fold design that allows it to transform from a compact phone to a tablet. It also works with foldable keyboard. The Mate XT boasts a 10.2-inch display with a 3K resolution, a powerful camera system including a 50 MP main sensor, and AI functionalities for text translation and image editing. In contrast, the iPhone 16 maintains a traditional slab design. The regular iPhone 16 and the larger iPhone 16 Plus will come with 6.1-inch and 6.7-inch displays, respectively. The iPhone 16 Pro screens are the largest ever on an iPhone, measuring 6.3 inches for the Pro model and 6.9 inches for the Pro Max. The iPhone 16 Pro Max features a new fusion camera and an upgraded interface, including a 48MP fusion camera with a second-generation quad-pixel sensor. There's a new 48MP ultra-wide camera with autofocus. Both the iPhone 16 Pro and iPhone 16 Pro Max are now equipped with a 5x telephoto lens featuring a 120 mm focal length. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Consumer Sentiment And Pre-Orders Despite its high price, the Mate XT has already racked up millions of pre-orders, indicating strong interest in its innovative design. However, analysts have previously cautioned that the Chinese smartphone maker might make only a few hundred thousand devices because Mate XT is expensive and its foldable screen is difficult to make, reported the New York Times. IDC analyst Arthur Guo also shared doubts about trifold devices significantly boosting the foldable market, noting challenges such as complex technical demands, low production yields, high costs, and a small number of companies involved. On the other hand, the iPhone 16 has faced criticism for its incremental upgrades and limited AI features, which some consumers feel do not justify an upgrade from previous models. Why It Matters: Huawei is seeking to make a comeback in the smartphone industry after the U.S. imposed sanctions on the company in 2019 and 2022. Despite these challenges, Huawei managed to rank fourth by market share with 10.6 million smartphones shipped, according to Canalys. In July this year, reports indicated that Apple slipped from third to sixth place in China's smartphone market, while Huawei experienced a notable increase in smartphone shipments. Apple's market share in China dropped to 14% in the second quarter of 2024, a decline of two percentage points compared to the same period last year. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Mark Cuban Explains Why, Despite Getting A Lot Of Flak From Elon Musk And Others, He Continues To Post On X: 'Don't Want to Be Where Everyone Agrees with Me' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Huawei Might Be Giving Apple A Run For Its Money In China, But Replacing The Tri-fold's Screen Could Cost You An iPhone Worth Of Cash - Apple (NASDAQ:AAPL)

Huawei Technologies Co.'s Mate XT Ultimate Design might be challenging Apple Inc. AAPL in China, but its screen replacement could ironically set you back as much as a brand-new iPhone. What Happened: China's top smartphone maker Huawei has unveiled the cost of replacement parts for its dual-hinged, triple-screen folding phone. The tri-fold phone which retails at around $2,809, could see owners shelling out an additional 7,999 yuan (about $1,125) for a replacement OLED panel if the folding screen incurs significant damage. "This price is the preferential price that consumers can enjoy after choosing to recycle the old screen for free. If you do not accept the free recycling of the old screen, you need to pay 9,799 yuan," the company stated. The 9,799 yuan was around $1,378, at the time of writing. See Also: Mark Cuban Praises Elon Musk's AI Chatbot Grok For Answering Kamala Harris' POV On Immigration: 'I Think It's Accurate' Huawei does offer some cost-saving alternatives for screen repairs. A refurbished replacement screen is slightly cheaper at 6,999 yuan which is around $983. Moreover, the company provides screen replacement insurance plans starting from 3,499 yuan (about $492) for a single screen replacement within the first year of purchase. The screen replacement update was first noticed by The Verge. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: The Mate XT Ultimate Design was launched by Huawei as a direct competitor to Apple's iPhone 16 series. The trifold phone, priced significantly higher than the iPhone 16 Pro Max's $1,199 for 256 GB storage, marked Huawei's intensified efforts to challenge Apple's smartphone dominance. The Mate XT, available in red and black, attracted 1.3 million orders within seven hours of opening reservations. Meanwhile, the iPhone 16 series launch has disappointed many users in China due to its lack of AI features. The hashtag "iPhone 16 Chinese version doesn't support AI yet" was trending on China's social media platform Weibo after the tech giant's "Glowtime" event. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Apple's iPhone Production Move To India Signals Broader Tech Exodus From China, With Microsoft And Amazon Following Suit, Says Analyst Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs