New Apple and Huawei smartphones hit stores

Apple and Huawei on Friday launched their latest flagship models, the iPhone 16 and Mate XT, in China. Despite challenging weather conditions, the stores were bustling with customers eager to get their hands on the latest devices.

The premium models of iPhone 16 and Mate XT, both priced above 10,000 yuan (US$1,408), have garnered significant interest in the Chinese market. Strong demand for these premium models indicates a rebound in the high-end smartphone market.

iPhone 16 attracts users despite AI limits

In September, Apple released its iPhone 16 line with selling points like Apple Intelligence, which features the ability to use the phone's camera to identify objects.

Hundreds of people flocked to an Apple store on Nanjing Road E to either pick up or have a look at the latest iPhones. The Genius Bar or tech support zone was temporarily closed on Friday, creating space for a special pick-up zone.

The standard iPhone 16 and some Pro models can be purchased on-site, but the most popular iPhone 16 Pro Max 256G and 512G models need to be ordered in advance. Some are buying an iPhone 16 Pro Max model and reselling it for an additional cost of 500 yuan.

Online platforms like JD and Pinduoduo offer iPhone 16 models with discounts, but most of these will be shipped after October 9.

Customers were keen to experience the new features such as a new camera control button and Apple Intelligence. The highly-anticipated artificial intelligence function is not available in China until next year.

Analysts said iPhone 16 sales in the short period will likely be flat or even decrease compared with previous iPhone releases due to the lack of AI functions. They expect sales to rebound next year once the AI function is available.

Apple in China, however, faces stiff competition with Chinese brand Huawei, which sells models with AI and a foldable design.

Huawei's triple-fold model

Huawei's tri-fold smartphone went on sale on Friday in its Shanghai flagship store on Nanjing Road E. It soon sold out both in store and online.

The smartphone maker launched its highly anticipated Z-shaped Mate XT, the world's first triple-fold smartphone early this month. Prices start at 19,999 yuan, with Huawei calling it the largest and thinnest foldable phone on the market.

A poster in Huawei's store showed the phone was "fully booked", asking consumers to try their luck tomorrow morning, with sales starting at 10:08am.

On the second floor, Huawei set up an experience zone to let people test the Mate XT, with one-on-one service for about 20 minutes.

The popularity of Huawei's new model is fueling the foldable smartphone market.

Huawei's XT Mate sales may hit 1 million units in 2024, said Ming-Chi Kuo, an analyst at TF International Securities. He has doubled his original sales prediction from 500,000 units.

In the second quarter, global foldable smartphone sales jumped 48 percent, making it the fastest growing segment in the smartphone market, according to Counterpoint Research.

Chinese smartphone maker Xiaomi has reportedly applied for a tri-fold smartphone patent, showing it may be close to launching new foldable models in the future.