Apple’s unveiling of the iPhone 16 on September 9, 2024, has left investors and consumers in China unimpressed, particularly with the anticipated AI features still in beta testing. Huawei has further intensified competition in the global smartphone market by launching the industry’s first tri-fold phone, the Mate XT.
The comparison between the two launches highlights Apple’s challenge of holding on to the lead as Huawei continues to grow even under the sanctions by the United States. Apple’s new iPhone 16 has AI features to improve Siri and the camera, but these features are still in the testing phase and will not be available until the next year.
Chinese users express disappointment over iPhone 16 AI limitations
Apple Intelligence, a new AI system, was also prominently featured during the launch of the iPhone 16. However, the tech giant revealed that the system’s Chinese language feature will not be rolled out until next year.
This has raised some concerns, from the Chinese users who thought that the AI was going to be one of the main highlights. The phrase “iPhone 16 Chinese version doesn’t support AI yet” on Weibo garnered over 11 million views with many people questioning the significance of the new iPhone if it lacks these features.
Additionally, some users expressed doubts as to whether the AI system would even be operative in mainland China due to Chinese laws on generative AI. Currently, there are 188 large language models certified by the Chinese government for public use, none of which are from foreign companies, including Apple. On its website, Apple has stated that AI features in its products will only be available in China if regulators permit it, and this remains unclear.
Huawei’s Mate XT garners millions of pre-orders despite high price
On the same day as Apple’s event, Huawei announced the Mate XT, a tri-fold smartphone priced at $2,800. The device also comes with several AI technologies, such as text summarization, translation, and AI-based image editing.
Although the Mate XT is quite expensive and has potential production constraints, it has already garnered more than 4 million pre-orders. Huawei’s local operations and adherence to the laws of China have also been advantages, given the current inclination towards local products.
Some Chinese users have described the iPhone 16 as the “last drop of the toothpaste tube” as there is little that is new in terms of hardware. This analogy, which was posted on Weibo, captures the notion that the latest model from Apple has not significantly differed from the previous one.
Apple’s market share in China declines significantly
Apple’s declining performance in China, where it once held a strong position, highlights the increasing competition from local manufacturers like Huawei. In a report by Canalys, iPhone shipments in China declined by 6.7% in Q2 2024, and Apple slipped to the sixth position in the market.
Additionally, Counterpoint, a research firm, stated, that iPhone sales declined by 19.2% year-on-year in the first quarter of 2024 and a further 5.7% in the second quarter. On the other hand, Huawei came back to the high-end market with Mate 60 Pro last year although the US sanctions were still in place.
Despite being one of the world’s most valuable brands, Apple is facing increasing difficulties in China. The Mate XT and iPhone 16 are expected to hit the market on September 20, 2024.
