Chinese tech group Huawei is aiming to take a bite out of the demand for rival Apple’s (AAPL) new iPhone 17 with its own smartphone surprise.
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Trifold Launch
Huawei launched the Mate XTs, its second-generation trifold smartphone today, just days before Apple’s much anticipated iPhone 17 debut. Apple’s shares dropped 0.5%
The Huawei phone starts at 17,999 Chinese yuan ($2,520) and goes up to 21,999 yuan for the model with the largest memory.
Foldable smartphones typically have one hinge that allows a user to fold the device in half. However, Huawei’s Mate XTs is dubbed a trifold — meaning it has two hinges that allow it to be folded at two points. The phone turns into a tablet-like device when opened up.
Huawei hopes the launch will help it steal another march on U.S. rival Apple. Huawei’s market share in China jumped to 18% in the second quarter versus 15% in the same period last year, and the company is now the biggest smartphone vendor in China.
Chinese Fight
Huawei regained the lead in China’s smartphone market during the second quarter of the year, according to data from Canalys. In fact, the company shipped 12.2 million smartphones, which was up 15% from a year earlier and equated to an 18% market share.
Meanwhile, Apple saw its shipments rise by 4% to 10.1 million units for a fifth-place finish. This was good news because it was Apple’s first time seeing growth in China since the fourth quarter of 2023.
That matters for Apple given that nearly a fifth of its sales come from China – see below:
In the Chinese foldable phone category, Huawei dominates with a 75% share of the market, according to the International Data Corporation.
Its Mate XT phone, which was launched last year, has performed well. It has sold 470,000 units since launch to the end of the second quarter of this year, generating over $1.3 billion of revenue.
“The performance is quite strong considering it’s one of the most expensive smartphones available and this shows there is a demand for something innovative,” said Francisco Jeronimo, a vice president covering devices at IDC.
Apple is expected to launch the iPhone 17 Air on September 9, priced between $949 and $999.
Is AAPL a Good Stock to Buy Now?
On TipRanks, AAPL has a Moderate Buy consensus based on 16 Buy, 12 Hold and 1 Sell ratings. Its highest price target is $280. AAPL stock’s consensus price target is $239.36, implying a 0.91% upside.
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