Apple's latest iPhone 16 has not generated the anticipated enthusiasm among investors, as its long-awaited AI features remain in testing phase. This comes at a time when Huawei has introduced an industry-first tri-fold phone, intensifying the competition in the global smartphone arena.

In premarket trading on Tuesday, Apple’s stock dipped by 1%, following the unveiling of its new iPhones, which feature hardware-level integration for AI applications but show minimal changes in their external design.

The new devices will incorporate AI capabilities known as Apple Intelligence, aimed at enhancing the functionality of Siri and improving camera performance.

These AI features are expected to be available in beta on iPhones next month, although the company has not provided a timeline for their full rollout.

"With phrases like 'later this year' and 'early next year,' the primary message from Apple regarding the iPhone 16 seems to be: improvements are on the horizon," noted Needham analyst Laura Martin in her report.

On the same day, Huawei showcased its Mate XT, a device that can be folded in three different ways. The phone has already garnered over 4 million pre-orders, with no deposit required, as stated on the company's website.

It features an AI assistant capable of text summarization, translation, and editing, along with AI-enhanced image editing tools that can remove unwanted elements from photos.

However, with a starting price of $2,800—more than double that of the comparable iPhone 16 Pro Max—and limited production, analysts suggest that the tri-fold phone may serve more as a testament to Huawei's technological capabilities rather than a significant sales contributor.

"Given the production limitations and high price, the new device is unlikely to significantly affect shipment volumes," commented Will Wong, a senior researcher at IDC.

"Nonetheless, it signals to consumers that Huawei remains a technology leader, and the challenge it poses to Apple could extend well beyond mere market share."

Both the Mate XT and iPhone 16 are set to be available for purchase on September 20.

Huawei's recent smartphone launch, following a series of successful introductions, highlights the company's adeptness in maneuvering through U.S. sanctions and reinforces its competitive stance against Apple in China. Some consumers have expressed dissatisfaction with the new iPhone 16, criticizing its absence of AI features tailored for the Chinese market.

Apple has not yet revealed an AI partner in China to enhance the 16s, and its AI software, Apple Intelligence, is set to be available in Chinese languages only next year.

"Why buy it if AI isn't available?" questioned one user on Weibo, a platform similar to X. Another user remarked, "Without AI as the main selling point, it should be priced at half."

While Apple previously enjoyed robust demand in China, where new iPhone releases once generated significant excitement, its sales have declined, resulting in a drop in its ranking from third to sixth in the world's second-largest economy.

Last year, Huawei made a significant return to the premium smartphone market with a device featuring a domestically produced chip, successfully navigating U.S. sanctions that restricted its access to the global chipset supply chain. The launch of the Mate 60 Pro took analysts and U.S. officials by surprise.

Huawei's portfolio already includes two-way foldable phones, and its strong performance in China has enabled it to surpass Samsung Electronics this year, becoming the leading vendor of such devices globally.