Editor | Jiran

The two hottest events in the tech circle lately have undoubtedly been the product launches of Apple and Huawei.

Huawei and Apple have always been compared, and when their product launches happen on the same day, the competitive atmosphere reaches its peak. On September 10th, both Apple and Huawei held their respective product launches on the same day, unveiling their most anticipated new models of the year. Even from the themes of their respective launches, one can feel the intense rivalry: Apple's theme was "Highlight Moments," while Huawei's was "Extraordinary Moments, Always Highlighted." The new products launched by the two companies have become hot topics of discussion among netizens. Apple unveiled new products such as the iPhone 16, Apple Watch, and AirPods, with the iPhone 16 series being hailed as "Apple's first AI phone."

Huawei, on the other hand, released new products such as the Mate XT Extraordinary Master, the Askey M9 five-seater version, and the Zhijie R7. In particular, the Mate XT, as the industry's first mass-produced tri-fold phone, has garnered significant attention, with its three-screen mode boasting a 10.2-inch display, comparable to a small tablet. Interestingly, Apple's launch, often regarded as the "Spring Festival Gala of the tech circle," did not elicit much applause this time but instead received numerous criticisms. In contrast, Huawei garnered wider and more positive discussions, with over 3 million people pre-ordering the Mate XT on the Huawei Mall prior to the launch. So, what gives Huawei the edge over Apple?

01

iPhone 16, "Highlight" Ends with the Launch

Many users' feedback on Apple's latest launch was that it was dull, lacked innovation, and fell short of expectations. Because almost every selling point failed to bring a refreshing breakthrough, the upgrades could be described as incremental at best. In June this year, Apple introduced Apple Intelligence, and as the first phone designed specifically for it, the iPhone 16 series was undoubtedly the highlight of the launch, with nearly an hour dedicated to its introduction – yet it continued the trend of incremental updates. Specifically, the new iPhone 16 comes in four models: Standard, Plus, Pro, and Pro Max, with starting prices of 5,999 yuan, 6,999 yuan, 7,999 yuan, and 9,999 yuan, respectively. In terms of appearance, the iPhone 16 series continues the rectangular frame design of Apple's recent models, similar to the iPhone 15 series, though the screens of the iPhone 16 Pro and 16 Pro Max are slightly larger with narrower bezels, which may not be immediately noticeable to users. Instead, color became a major point of criticism for the iPhone 16. After the launch, the hashtag "ugly Apple colors" trended on social media, with some netizens comparing the colors of the iPhone 16 to those of autumn clothing, describing them as "cheap-looking," "oversaturated," and "resembling garbage bag colors."

The iPhone 16's camera has undergone some upgrades, with the main camera now featuring 48 megapixels and supporting 4K video recording at 120 frames per second. Night mode, portrait mode, and depth shooting have also been optimized, resulting in better performance in low-light conditions. However, compared to the iPhone 15, the shooting experience of the iPhone 16 has not seen a qualitative leap. Even more awkwardly, compared to domestic brands like Huawei, Xiaomi, and OV, Apple's camera doesn't stand out as impressive. In recent years, domestic phone brands have made more significant breakthroughs in imaging technologies such as photography algorithms and AI photography.

The above-mentioned upgrades are relatively routine, and the focus of Apple's launch was undoubtedly the AI capabilities of the phones. During the launch, Apple CEO Tim Cook stated that the new iPhone was built entirely for Apple Intelligence, and the A18 chip in the iPhone 16 series was touted as "built specifically for Apple Intelligence," with AI-side computing power more than double that of the A16 chip in the iPhone 15. Since ordinary users may not be familiar with concepts like intelligence and computing power, Apple showcased many AI applications on the iPhone 16.

For example, users can use AI to proofread and polish articles, generate emojis based on language descriptions, find corresponding photos and videos in their photo albums using language descriptions, and even generate summaries of email content with AI in the Mail app. These functions are available on many AI software and hardware, but Apple's advantage lies in its flagship product, the iPhone. The newly added camera control button on the iPhone 16 enables AI features, specifically visual intelligence, which was a key focus of Apple's presentation.

For instance, when you see a restaurant, you can use the camera control button on the iPhone 16 to take a photo of its facade, and the phone will automatically display information such as its business hours and reviews, allowing you to make reservations. You can also identify a bicycle, and the phone will provide its price and purchase channels. While Apple touts the AI capabilities of the iPhone 16 as its biggest selling point, it may have forgotten that since the advent of ChatGPT, the world has already embraced the AI trend, and many users have already experienced various AI applications. The so-called innovative visual intelligence of the iPhone 16 is actually already available on some other AI large language models.

Overall, Apple has failed to lead the way in AI phones, as it once did with smartphones.

Far from leading, Apple remains constrained by its existing product mindset, offering only modest improvements rather than the groundbreaking advancements expected by its fans. As a result, this launch felt more like a routine product iteration, hardly deserving of the "Highlight Moments" theme. Nabila Popal, Senior Director of IDC's Global Data and Analytics Team, noted that while Apple's new smartphones introduced this year have many highlights, they are unlikely to drive significant growth and are more about staving off decline.

Once a clear leader in the tech industry, Apple now resembles more of a "follower." In the era of AI, compared to peers like OpenAI and Microsoft, Apple has lagged behind. Now, it seems eager to prove itself in the AI era but has failed to demonstrate true innovation. This has fueled nostalgia for the genuine highlight moments when Steve Jobs unveiled the iPhone, iPod, and MacBook.

02

Huawei's Tri-Fold Screen: A Breakthrough for Chinese Phone Makers

Just hours after Apple's launch, Huawei held its own event. The biggest surprise of the launch was the unveiling of the tri-fold screen phone, the Mate XT Extraordinary Master, whose main selling point is its screen. The Mate XT offers single-screen, dual-screen, and tri-screen modes. In single-screen mode, the phone is 12.8 mm thick, while in tri-screen mode, it reaches a maximum of 3.6 mm at its thinnest point, with a 10.2-inch display and a weight of 306 grams, including the screen surface layer. Some netizens joked that using the tri-fold screen was like flipping through imperial decrees as an emperor.

On the evening of September 9, the day before the launch, the Huawei Mall showed that pre-orders for Huawei's tri-fold phone, the Mate XT Extraordinary Master, had surpassed 3 million. According to Tianyancha's intellectual property information, Huawei Technologies Co., Ltd. applied for two patents related to "foldable electronic devices and housing devices" in March 2022. Among them, the utility model patent was authorized in November 2022, and the invention patent was published in September 2023.

Currently, opinions on the Mate XT are divided among netizens. Some believe that its ultra-thin design can bring a brand-new experience, while others argue that the tri-fold design may compromise durability, leading to creases and breakage. Indeed, due to the addition of an extra screen and hinge, tri-fold screens are more prone to creases and quality issues, requiring manufacturers to enhance their screen and hinge processing technologies. At the launch, Yu Chengdong introduced that Huawei had spent five years solving technical challenges related to screens and hinges, with the globally pioneering Huawei Tiangong hinge system enabling dual-rail linkage for both internal and external bending. Another breakthrough of the Mate XT lies in its mass production.

Previously, domestic phone brands such as Honor and OPPO, as well as foreign brands like Samsung, had showcased tri-fold screen concept phones, but none had gone into mass production. The Mate XT, however, is the world's first mass-produced tri-fold screen phone, turning a blueprint into reality. Nevertheless, the Mate XT is not without its drawbacks.

Firstly, its high price, starting at 19,999 yuan, has sparked much controversy. On second-hand platforms, the price of the tri-fold screen Mate XT has soared to tens of thousands of yuan, while the iPhone 16 series has seen price increases of no more than 2,000 yuan. Some people find the Mate XT's price outrageous. In reality, the Mate XT is an "electronic luxury item" targeted at entrepreneurs and small business owners, rather than ordinary workers.

Secondly, after mass production and delivery, the Mate XT may face challenges in yield rates. According to relevant research reports from Shanxi Securities, the median yield rate of hinges in the industry is around 50%-60%, posing a significant barrier in the assembly process of foldable screens. The use of a dual-hinge structure in a tri-fold phone further complicates matters. Although Huawei claims to have overcome technical hurdles with the Mate XT, it must still brace for real-world feedback from users after delivery. If quality issues lead to a collapse in reputation, even mass production would be considered a failure.

Lastly, it remains to be seen how much momentum the Mate XT can generate for Huawei. While the Mate XT has garnered significant media attention, foldable screens still account for a small portion of the mobile phone market. According to Trend Force data, global shipments of foldable phones reached 15.9 million units in 2023, accounting for only 1.4% of overall smartphone shipments. Shipments are projected to increase to 17.7 million units in 2024, but the market share will only rise to 1.5%. How much energy the Mate XT can inject into Huawei's position in the mobile phone market remains to be seen over time.

03

Apple Going Down, Huawei Going Up

From the launches, it is clear that Huawei stole the spotlight from Apple. Overall, Apple and Huawei have been trending in opposite directions in recent years, with Apple declining and Huawei rising. According to IDC data, Huawei regained the top spot in China's smartphone market in the first half of 2024 with a 17.5% market share, with shipments growing by 110% and 50.2% in the first and second quarters, respectively, outpacing the industry. In the high-end market, Huawei is also gaining momentum.

Canalys data shows that in the Chinese mainland's over-US$600 smartphone market, Apple remained the market leader in the first quarter of this year with a 54% market share, but sales declined by 25% year-on-year. In contrast, Huawei's sales grew by 67% year-on-year, reaching a 26% market share. In the second quarter, Apple's market share further declined to 52%, while Huawei's rose to 30%. Beyond the hardware market, Huawei is also gaining ground over Apple in the software market for operating systems.

Counterpoint data shows that HarmonyOS continued its strong growth momentum in the first quarter of 2024, with its global market share successfully exceeding 4%. In the Chinese market, thanks to the popularity of Huawei's flagship products, HarmonyOS surpassed iOS for the first time to become the second-largest operating system. On the other hand, Apple has entered a tumultuous period, facing challenges such as sluggish iPhone 15 sales, declining market share, share sales by Warren Buffett, and a lack of popularity in the AI era.

Why is Apple falling behind, especially in the AI era? Relying on past achievements and neglecting innovation is a crucial factor. Last year, Bloomberg quoted Tim Cook as saying, "Apple has been working on generative AI technology for years. But I can tell you categorically that Apple executives were caught off guard by the sudden AI boom in the industry and have been busy catching up since the end of last year." After facing strong pressure from the United States, Huawei has persevered through dark times and successfully withstood the pressure test. It is now exuding vitality and demonstrating robust momentum. This brings a business insight: nothing is permanent in business. Only by maintaining a constant sense of crisis can companies stay ahead of the game.