Timing indeed can be very crucial. Twelve months ago, while Commerce Secretary Gina Raimondo was concluding her official visit to China, Huawei released information about their unexpected microchip breakthrough.
This week, the US held off on announcing additional export penalties until after National Security Adviser Jake Sullivan returned from his trip to Beijing.
Once more, Huawei has announced that it would be disrupting Apple’s highly anticipated iPhone 16 launch party next week. Huawei will launch the Mate XT, the world’s first tri-fold smartphone, a few hours after Apple on September 9th presents the first phones with Apple Intelligence.
It’s expected that a double-hinged smartphone that unfolds into a 10-inch screen will be taken off the shelves very quickly by consumers in China, even though it’s not exactly clear if it’s something they are actually interested in at this time.
The goal of the XT launch is to increase Chinese customers’ patriotic indignation of US attempts to marginalize the company, which has boosted Huawei’s sales. The enormous fan following will be ecstatic to witness their national champion consuming a portion of Apple’s market share.
However, for Apple, this might not really be anything significant.
Apple probably won’t even pay much attention to it considering the two companies’ unequal rivalry.
Since Huawei is not present in the US, even if the two businesses’ global competition is intensifying, they will not be competing against one other on Apple’s territory.
The IT industry could use a fierce, patriotic rivalry that makes news and boosts revenue.
But Apple’s issues in China are more serious. Since Huawei entered the game again, it has given up phone market share and has fallen out of China’s top five ranking for the first time.
During the first nine months of the year, its operating income dropped 14% and its revenue from China decreased by 10%.
Although most experts believe that the iPhone 16 and the recovery in the smartphone markets would help Apple’s worldwide outlook, it will probably be difficult for the firm to make up ground in China.
