WJR News

Apple (AAPL.O) showcased its updated Watches and AirPods during an event on Monday that spotlighted the AI-powered iPhone 16, but the product launch risks being overshadowed by Chinese rival Huawei’s new tri-fold phone, which had over 3 million pre-orders by the time Apple’s event began.

Huawei’s Z-shaped tri-fold phone was unofficially announced earlier in the day, highlighting the company’s ability to navigate U.S. sanctions while competing against Apple in the AI-driven smartphone market. As demand for AI features in China surges, Huawei’s aggressive entry into the market underscores its strength against Apple, especially among consumers seeking cutting-edge AI capabilities.

New Apple Watches and AirPods

Among the new products unveiled, Apple introduced the Series 10 Watch, starting at $399, which is thinner and features a screen up to 30% larger than previous models. The watch is equipped with advanced features for health monitoring, such as detecting sleep apnea and responding to emergencies like falls.

Apple also launched the more rugged Watch Ultra 2, priced at $799, designed for extreme environments and outdoor sports. The new AirPods 4 were also introduced, boasting improved acoustics and a redesigned form for better comfort.

AI-Enhanced iPhone 16 and Apple Intelligence

While these updates are significant, the highlight of the event was Apple’s introduction of the iPhone 16, the first iPhone model designed from the ground up with Apple Intelligence, the company’s take on AI technology. CEO Tim Cook emphasized the importance of AI in Apple’s future during his opening remarks, saying, “We are thrilled to introduce the first iPhones designed from the ground up for Apple Intelligence and its breakthrough capabilities.”

Apple’s AI features include generative capabilities that can create text, images, and other content on demand, similar to advancements seen from other tech companies. However, these upgrades won’t be immediately available to consumers. Reports suggest that Apple Intelligence features will be rolled out via a software update in October, with a major update to Siri expected in early 2024.

Competitive Pressure from Huawei

Despite the excitement surrounding Apple’s announcements, Huawei’s tri-fold phone has garnered significant attention, particularly in China, where demand for AI-driven features is higher than in the U.S. Ben Bajarin, CEO and principal analyst at Creative Strategies, noted that it will be challenging for Apple to bring its AI innovations to the Chinese market quickly.

“The Chinese market is hungrier for AI features than the U.S. market,” Bajarin said. “For Apple, it will be very difficult to bring it to China immediately, so they’ll be going off the merits of the hardware.”

Apple Shares Unchanged

Apple’s stock remained largely unchanged in early afternoon trading, indicating a cautious response from investors to the product announcements. Meanwhile, Huawei’s rising pre-orders in China showcase the company’s growing dominance in its home market, fueled by its ability to innovate within the bounds of U.S. sanctions.

What’s Next for Apple

With its AI-enhanced iPhone 16 and Apple Intelligence features, Apple is positioning itself to compete in the AI space, but it may take time for these advancements to make a significant impact on its global market. The real test will come when the AI updates are fully integrated into its products, with Apple fans eagerly waiting for the promised upgrades in iOS and Siri in the months ahead.