BEIJING – Apple's latest iPhone 16 failed to impress investors, as its anticipated AI features remain in testing mode, while Huawei's groundbreaking tri-fold phone has intensified the competition for global smartphone dominance.

Apple's stock dipped 1% in pre-market trading on September 10, a day after the tech giant introduced its new iPhone models. These devices feature hardware-integrated AI capabilities but show minimal changes in design. The new AI system, called "Apple Intelligence," will improve Siri and enhance camera performance, though these features will be available in beta starting in October. The company did not specify a timeline for a full release.

"With phrases like 'later this year' and 'early next year', Apple's core message for the iPhone 16 was: Next year will be better," said Needham analyst Laura Martin in a note.

Meanwhile, Huawei unveiled its Mate XT on September 10, a smartphone that can fold in three directions. The device has already garnered over four million pre-orders, without requiring a deposit, according to Huawei's website.

The Mate XT boasts an AI assistant offering text summarization, translation, and editing tools, alongside AI-powered image editing features such as removing unwanted elements from photos.

However, with a starting price of US$2,800 (S$3,653) — more than double that of the iPhone 16 Pro Max — and limited production, analysts believe the tri-fold phone is more a showcase of Huawei's technological strength than a significant revenue driver.

"Production limitations and the high price mean this new phone won't make a huge impact in terms of sales volume," said Will Wong, a senior researcher at IDC. "But it signals to consumers that Huawei remains a tech leader, and its challenge to Apple could extend beyond just market share."

Both the Mate XT and iPhone 16 will be available for sale starting September 20.

**Apple's AI Struggles**

Huawei’s latest launch highlights its resilience in overcoming US sanctions and reinforces its competitive stance against Apple in China, where some consumers criticized the iPhone 16 for lacking AI features.

Apple has yet to secure an AI partner in China for the iPhone 16, and its AI software, Apple Intelligence, won’t be available in Chinese until 2025.

"Why buy it if you can't use AI?" wrote one Weibo user.

Another commented: "Without AI as a key feature, it should be half the price."

Apple’s popularity in China has waned, with the company's ranking in the Chinese market slipping from third to sixth place.

In contrast, Huawei’s resurgence in the high-end smartphone market, marked by its 2023 release of a device featuring a domestically produced chip, has defied US sanctions that restricted its access to the global chipset supply chain. The launch of the Mate 60 Pro surprised both analysts and US officials.

With strong domestic sales, Huawei overtook Samsung as the world's leading vendor of foldable phones in 2024, cementing its position in the smartphone industry.

Disclaimer: This image is taken from Reuters