Apple’s latest iPhone 16 launch has left investors underwhelmed, with its anticipated Artificial Intelligence (AI) features still in testing. Meanwhile, Huawei made waves by unveiling an industry-first tri-fold smartphone, intensifying competition in the global smartphone market.
Apple’s stock dropped 1.7% after the new iPhone 16 was revealed, featuring hardware-integrated AI capabilities but only minor design updates. The AI features, branded as “Apple Intelligence,” will enhance Siri and the camera, but they are set to roll out in beta on U.S. iPhones next month. This delayed release could discourage users from upgrading to the iPhone 16 immediately.
“Apple’s key message for the iPhone 16 was essentially: ‘Next year will be better,’” said Needham analyst Laura Martin, pointing to the absence of a clear timeline for when the AI features would move beyond testing. Apple also has yet to announce a Chinese partner to support its AI plans.
In China, where AI regulations are strict, the lack of AI functionality in the new iPhones sparked criticism. The hashtag “iPhone 16 Chinese version doesn’t support AI yet” gained over 11 million views on Weibo, with many users questioning the value of the new iPhone without its AI features.
Despite the buzz around AI, Apple decided not to raise the prices of the iPhone 16, a move analysts say reflects consumer reluctance to spend on high-priced items. Meanwhile, Huawei launched its Mate XT, a tri-fold phone priced at $2,800, just hours after Apple’s event. Although production limits and the high price may restrict its initial impact, Huawei is positioning itself as a leading innovator, challenging Apple not only in market share but in technological advancement.
The Mate XT has already attracted over 4 million pre-orders and offers AI-powered features like text summarization, translation, and advanced image editing. Huawei’s recent smartphone successes highlight its ability to overcome U.S. sanctions, solidifying its standing in China’s high-end market.
In contrast, Apple has seen a slowdown in Chinese sales. Its iPhone shipments in China dropped 6.7% in the second quarter of 2024, with its ranking falling from third to sixth place in the Chinese smartphone market. Both the Mate XT and iPhone 16 are scheduled to go on sale on September 20.
