Apple’s new iPhone 16 failed to excite investors with long-expected Artificial Intelligence (AI) features still in test mode even as an industry-first tri-fold phone from Huawei raised the stakes in a battle to dominate the global smartphone market.
Apple recently introduced its latest iPhone 16, but it failed to generate excitement among investors. The company’s shares dropped by 1.7% following the launch. While the iPhone 16 New features new technology related to Artificial Intelligence (AI), many of these features are still in the testing stage. This delay, along with limited changes to the phone’s external design, left many feeling underwhelmed.
AI Features Still Not Ready for Public Use
One of the key updates in the iPhone 16 is the introduction of AI, which Apple is calling “Apple Intelligence.” These AI features are supposed to improve the functionality of Siri, Apple’s voice assistant, and enhance the camera. However, these AI tools will not be fully available until later, with a beta version being released in the U.S. next month. This delay in delivering the AI features means some people may not feel the need to upgrade their phones right away.
Laura Martin, an analyst at Needham, pointed out that Apple’s main message during the event seemed to be, “Next year will be better.” This has caused some disappointment among potential buyers who were hoping for immediate benefits.
Chinese Users Disappointed by Lack of AI in Local Version
Apple’s decision to not fully introduce AI in the Chinese version of the iPhone 16 has sparked frustration. In China, the hashtag “iPhone 16 Chinese version doesn’t support AI yet” went viral, gathering more than 11 million views on social media platform Weibo. Many users expressed disappointment that they wouldn’t have access to AI features, with some even saying that the phone should be priced lower if AI isn’t included.
China’s government has strict regulations on AI, requiring it to be vetted before its public release, which could explain why the AI features aren’t ready yet in that market. Still, this has hurt Apple’s appeal in China, a critical market for the company.
Huawei’s Bold Move with the Mate XT Tri-Fold Phone
While Apple faced criticism, Huawei used the same week to launch its innovative Mate XT, a smartphone with a tri-fold design. This phone, priced at a hefty $2,800, stands out for its ability to fold in three different ways, offering more flexibility for users. Huawei’s new phone also includes impressive AI features that allow for advanced image editing and text summarization.
Even though the high price and production limitations may limit the phone’s availability, the Mate XT has already received more than 4 million pre-orders, showing strong interest from consumers.
Huawei’s AI Features Win Over Consumers
The AI functions in Huawei’s Mate XT go beyond what many current smartphones offer. The phone’s AI assistant can summarize long texts, translate languages, and edit written content. Its AI-powered camera tools allow users to edit images more easily, such as removing unwanted parts of photos. These innovative features are helping Huawei reinforce its image as a technology leader.
Despite challenges from U.S. sanctions, which have affected Huawei’s ability to access global chip supplies, the company has successfully navigated these obstacles and continues to develop high-end products that compete with Apple.
Apple’s Struggles in the Chinese Market
Huawei’s ability to adapt and innovate has put pressure on Apple, especially in China, one of the largest smartphone markets in the world. In recent years, Apple saw strong growth in China, but this momentum has slowed significantly. In fact, Apple’s ranking in the Chinese market has fallen from third to sixth place.
According to a report from Canalys, iPhone shipments in China dropped by 6.7% in the second quarter of 2024. This decline shows that Apple is facing tough competition from local brands like Huawei, which have made a strong comeback in recent years.
Huawei’s Comeback and the Competitive Smartphone Market
Huawei’s recent successes, especially in the high-end smartphone market, show the company’s resilience in overcoming significant obstacles. After being hit with U.S. sanctions that cut off access to key components, Huawei made a strong return by developing smartphones powered by domestically-produced chips. The Mate XT is another step in this comeback, offering features that challenge Apple’s dominance, especially in markets like China.
While Huawei’s new device may not immediately impact global sales due to its high price and production limits, it sends a clear message to consumers and competitors alike: Huawei is still a major player in the smartphone market.
Conclusion: Apple vs. Huawei – A Growing Rivalry
As the smartphone market becomes increasingly competitive, Apple and Huawei find themselves locked in a battle for global dominance. With Apple’s iPhone 16 receiving mixed reviews and Huawei continuing to innovate, the landscape is shifting. Huawei’s AI-powered Mate XT and its tri-fold design raise the bar for smartphone design and functionality, making it a formidable competitor in the global tech market. On the other hand, Apple’s future success may depend on its ability to fully deliver on its AI promises, especially in key markets like China.
