On Friday, September 20, 2024, Apple launched its much-anticipated iPhone 16 in China, but competition from domestic tech giant Huawei is proving to be fierce. Many affluent Apple users in China have expressed equal interest in Huawei’s pricier Mate XT, a cutting-edge trifold phone.
In spot checks conducted by CNBC at Apple and Huawei stores in Beijing, out of 10 people interviewed, eight said they were interested in both the new iPhone 16 and Huawei’s Mate XT. Both devices launched on the same day, but while lines formed outside Apple stores as early as 5:30 a.m., re were no such queues outside Huawei’s stores, which began deliveries at 10:08 a.m. to customers who had reserved trifold phones.
Apple vs. Huawei: Smartphone Battle Intensifies
new iPhone 16 comes with a starting price of $799, while iPhone 16 Pro Max begins at $1,199. In contrast, Huawei’s Mate XT starts at over $2,800, positioning it at the higher end of the market. Despite this, interest in Huawei’s new offering remains high, particularly among users eager to explore innovative trifold design.
Apple, however, continues to attract a loyal fan base. In Beijing, eager customers lined up for hours to be among the first to purchase a new iPhone. The launch of iPhone 16 was part of a global release spanning nearly 60 countries, although it didn’t include Apple Intelligence, much-anticipated AI software expected in future models.
Despite Huawei’s higher price point, second-hand listings for Mate XT soared, with some units being resold for as much as 60,000 yuan ($8,520) on platforms like Xianyu, far exceeding prices seen for iPhone 16 Pro Max, which was being resold for up to 16,300 yuan ($2,300). This indicates intense demand for Huawei’s device, particularly from those buying it for resale.
Resurgence of Huawei’s Smartphone Business
Huawei has made a remarkable comeback in the smartphone market, especially after being hit by U.S. sanctions in 2019. According to market research firm Canalys, Huawei ranked fourth in China’s smartphone market during the second quarter of 2024. In contrast, Apple dropped out of the top five, with domestic competitors dominating rankings for the first time.
Huawei’s Mate XT launch is part of its broader effort to rebuild its smartphone business, which suffered due to U.S. sanctions that cut off access to key components. Mate XT is seen as a breakthrough product, combining high-end features with a unique trifold design that sets it apart from competitors.
Mixed Reception for Apple and Huawei
Although the iPhone launch saw lines outside Apple stores, Huawei’s Mate XT had a quieter reception. Customers at Huawei’s stores, including one customer surnamed Yang, expressed interest in trying out the trifold phone but were more cautious about committing to a purchase. Many customers appeared to be considering reselling the device, hoping to profit from the device’s high demand.
Even the first person in line at an Apple store in Beijing, a man surnamed Wang, revealed that he was also interested in purchasing Huawei Mate XT, despite having already secured an iPhone 16. Wang noted that while he bought iPhone 16 for its improved battery life, he was waiting for the next model, iPhone 17, to introduce more innovative features like AI.
Road Ahead: A Fierce Competition
As the smartphone market in China becomes increasingly competitive, both Apple and Huawei are vying for consumer attention with high-end features and cutting-edge designs. Huawei’s ability to attract affluent consumers with its premium Mate XT device, despite its steep price tag, marks a new chapter in the company’s resurgence.
Meanwhile, Apple continues to hold a strong foothold in the market, especially among customers who remain loyal to the brand for its reliability and battery improvements. However, with AI and innovation taking center stage in the tech world, competition between Apple and Huawei is set to intensify as both companies push the boundaries of smartphone technology.
The coming months will reveal whether Apple’s strategy of incremental improvements will be enough to maintain its market share, or if Huawei’s bold innovations can capture the imagination of Chinese consumers looking for the next big thing in smartphones.
- Huawei’s Mate XT and iPhone 16 hit shelves on the same day, drawing consumers and scalpers South China Morning Post.
- Huawei’s trifold phone is proving popular among Apple iPhone fans in Beijing CNBC.
- Huawei’s Mate XT tri-fold handset sparks frenzy, leading scalpers to hike prices South China Morning Post.
- Apple’s showdown with its Chinese rival Huawei is here as both companies launch new smartphones on the same day Business Insider.
- Huawei ‘super fans’ fuming as left empty handed by $2,800 phone launch Reuters
