This article first appeared on GuruFocus.
Apple Inc. (AAPL, Financials) is feeling the heat in China after Huawei surprised the market with a new foldable phone launch just days before the iPhone 17 reveal. Shares of Apple slipped about 0.5% as investors weighed the timing and competitive pressure.
Huawei rolled out the Mate XTs, a trifold smartphone that unfolds into a tablet-sized screen. Priced between $2,520 and $3,020, it’s a premium device aimed at cementing Huawei’s early lead in foldables. The company already controls three-quarters of China’s foldable market, with last year’s Mate XT alone pulling in $1.3 billion in sales.
That strength has helped Huawei reclaim the No. 1 spot in China. It shipped 12.2 million smartphones in the second quarter, up 15% year over year. Apple, by comparison, shipped 10.1 million units a modest 4% gain that put it in fifth place. With nearly one-fifth of Apple’s revenue tied to China, the competitive dynamics there matter.
Apple will counter with the iPhone 17 Air, expected to launch Sept. 9 with a price between $949 and $999. Analysts remain moderately positive on Apple, with a consensus price target near $239 roughly flat from current levels.
Investors will be watching how the iPhone 17 stacks up against Huawei’s latest release and whether Apple can regain momentum in its most important overseas market.