Has Huawei Outplayed Apple in the AI Game?

Welcome to another pulse-pounding edition of THE AI BYTE! 🚀 Today, we’re talking about the latest battle between Apple and Huawei—two tech giants racing to own the AI-powered smartphone world.

Get your popcorn ready, this one is heating up! 🥊

(5-minute BYTE sized update⏳)

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So, Apple just dropped the new iPhone 16 series, which was supposed to be their shiny new leap into AI... but instead, it’s got a lot of people asking, "Wait, that’s it?" Why? Well, Apple’s AI-powered features are still in beta and may take months—or even years—to fully roll out. Ouch.

Now, enter Huawei, stage left. Just hours after Apple’s event, the Chinese tech giant launched its Mate XT smartphone, loaded with jaw-dropping AI features powered by Huawei’s in-house Kylin chips. Talk about a mic drop moment! 💥

But what does this mean for Apple in one of its most crucial markets, Mainland China? Let’s break it down.

Apple’s AI Gamble: A Letdown?

When Apple teased its new Apple Intelligence suite at their developer’s conference, everyone was buzzing. But fast forward to today, and many key features are still MIA. Not only that, but Apple fans will have to wait until next year for some of these game-changing features to actually land on the iPhone 16. Yep, you read that right—next year.

At the moment, Apple’s AI efforts are focused on summarizing messages and notifications. Cool, but... not exactly mind-blowing. Meanwhile, industry analysts are scratching their heads. According to Needham analyst Laura Martin, the key takeaway from Apple’s launch event was: “Next year will be better.” Yikes.

China’s Reaction: Excitement Turned to Disappointment

Here’s where it gets really tricky for Apple. In China, the excitement around the iPhone 16 quickly fizzled out when locals found out they wouldn’t get their hands on the new AI features until next year—in their own language. That’s a hard pill to swallow, especially with fierce competition from homegrown brands like Huawei.

In contrast, Huawei’s Mate XT comes ready with a full suite of AI tools the moment it hits the shelves. We’re talking text summaries, translations, image editing—everything you’d expect from an AI-powered phone, and more! Apple fans in China aren’t happy. One Weibo user even quipped, “With the biggest selling point unavailable, shouldn’t you charge us half the price?”

Meanwhile, Huawei is stealing the show. Their Mate XT, a foldable beauty, already has over 4 million pre-orders—and you don’t even need to pay a deposit to reserve yours. According to IDC, the global market for foldables is taking off, with 4 million units sold in just the second quarter of this year.

The Huawei Surge: Flexing Despite Sanctions

Huawei’s comeback story is nothing short of impressive. Despite US sanctions, they’ve stormed back into the high-end smartphone market, thanks to their self-made Kylin chip. Last year’s Mate 60 Pro launch left analysts—and US officials—stunned.

But that’s not all. Huawei’s foldable phones have taken off in a big way, and their strong sales in China helped them overtake Samsung as the world’s largest vendor of foldable phones earlier this year. Now, with the Mate XT boasting serious AI firepower, they’re poised to capitalize on Apple’s AI delays in China.

Apple’s Regulatory Roadblock

Here’s the catch: Apple hasn’t even announced a local AI partner in China to power Apple Intelligence. And with China’s strict regulatory landscape, things aren’t looking simple. The Ministry of Industry and Information Technology recently approved 188 large language models for public use, but none are from foreign companies—including Apple.

So, while Apple tries to navigate these regulatory hurdles, Huawei is already charging ahead. If Apple doesn’t catch up soon, it may find itself on the losing side of the AI race in China.

The Final Verdict: Can Apple Regain Ground?

The clock is ticking. Apple’s AI delays in China are giving Huawei a golden opportunity to take over. And with Apple’s sales already slipping—from third to sixth place in China—it’s clear that the stakes are sky-high.

Will Apple’s delayed AI rollout cost them the race in the world’s second-largest economy? Or will they find a way to adapt their strategy and reclaim the crown? Only time will tell.

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