Huawei’s Mate XT receives 2.7 million pre-orders prior to the release of Apple’s iPhone 16.
TakeAway Points:
- Preorders for Huawei’s Mate XT tri-fold phone, which was purposefully released ahead of Apple’s iPhone 16 announcement, totalled 2.7 million.
- The new A18 chip, which is based on Arm’s V9 architecture and improves AI capabilities, will be seen in Apple’s iPhone 16.
- Due to increased investment in AI chips and diversification, Arm’s shares have soared by 70% in 2024.
Pre-orders for Huawei’s Tri-Fold phones
Huawei has garnered significant attention with its latest tri-fold smartphone, the Mate XT, which has received over 2.7 million pre-orders, according to the company’s website. The pre-order phase began at midday on Saturday, more than two days ahead of Apple’s scheduled iPhone 16 launch. The Mate XT is set to officially go on sale on September 20, although Huawei has yet to disclose the price of the new device.
The timing of Huawei’s pre-order launch appears strategic, as it precedes Apple’s iPhone 16 launch early Tuesday morning, Beijing time. Huawei had previously announced that it would unveil a new product at 2:30 p.m. on Tuesday. This move comes as Apple has fallen out of the top five smartphone vendors in China for the second quarter, according to data from Canalys. This marks the first time that domestic players have occupied all five spots in the Chinese market.
Huawei ranked fourth in market share with 10.6 million smartphones shipped, while Apple shipped 10 million phones in the first quarter. Huawei’s portfolio already includes folding and flip phones, categories in which Apple has yet to venture.
Apple’s AI Integration with the iPhone 16
Apple is set to launch its iPhone 16 on Monday, featuring a next-generation chip based on Arm’s newest V9 design architecture. This marks a significant step in Apple’s efforts to integrate generative artificial intelligence (AI) features into its smartphones. The new A18 chip will be revealed at Apple’s event, with the company embracing Arm’s V9 chip design, which brings in twice the royalties of the previous V8 generation.
The adoption of V9 architecture is a boost for Arm, which has a multiyear licensing agreement with Apple. Arm’s chip architecture provides the building blocks for the chip, and the company secures revenue through both licensing and royalties. Arm launched the V9 architecture in 2021, and Apple is already using it for its newest line of M4 MacBook chips, announced in May.
Apple is in the process of rebranding itself as an AI-focused company, introducing features collectively known as “Apple Intelligence.” These include a smarter Siri, custom emoji generation, and photo editing capabilities using in-house AI models. The company has also partnered with OpenAI to provide users with free access to ChatGPT and has developed a “Private Cloud Compute” infrastructure to secure user data.
The Competitive Environment and Market Implications
The increased computational demands of running AI models on smartphones make advances in chip technology essential. Apple Intelligence features can only operate on the company’s most advanced iPhone 15 Pro and Pro Max devices, which use the A17 Pro chip based on Arm’s previous V8 architecture. Investors are keenly watching the iPhone 16 launch for further details on when these AI features will be available to consumers. Apple has indicated a staggered rollout, with some features being introduced first and additional languages and regions added later.
Arm’s shares have risen approximately 70% since the start of 2024, benefiting from diversification into PC, automotive, and industrial chips, as well as a surge in investment in AI chips. The iPhone 16 launch is expected to provide further insights into Apple’s AI strategy and its impact on the market.
