Apple has new phone, but so does Huawei

Appeal of Mate 60 expected to put pressure on iPhone 15 sales in China, analysts say

Apple Inc unveiled on Tuesday its next generation of iPhones — a lineup that boasts better cameras, faster processors and a new charging system.

But the timing of the launch, close on the heels of Huawei Technologies' release of a new flagship series, could put pressure on iPhone sales in China and other regions, analysts said.

During the showcase at its headquarters in Cupertino, California, the United States, Apple announced that its four iPhone 15 models will hit stores on Sept 22, which is roughly two weeks after the official premiere of Huawei's Mate 60 series that garnered a lot of consumer interest.

Huawei announced on Tuesday that it has raised the second-half shipment target for its Mate 60 smartphones by 20 percent, according to China's Securities Times. It has been reported that the company expects new smartphone shipments for 2023 to reach at least 40 million units.

MarketWatch reported that the Mate 60 series marks a new milestone for China's domestic chipmaking industry for mass market consumer device semiconductors. The Mate 60 Pro is even equipped with 5G for faster connection speeds.

Apple's latest smartphone, the iPhone 15 Pro, is powered by the industry's first 3-nanometer chip. The company said this self-designed A17 Pro chip brings improvements to the entire semiconductor chain, including the biggest graphics processing unit redesign in the company's history.

Generally, the smaller the size — which indicates the distance between transistors — the more powerful the chip.

Roger Sheng, vice-president of research at US market research company Gartner Inc, said that Apple has been working hard to beef up its in-house chip abilities in recent years.

However, according to Market-Watch, JP Morgan analyst Gokul Hariharan wrote in a note on Tuesday that Huawei "has already been making a comeback" in China's domestic smartphone market. "This is likely to halt iPhone market-share gains in China, and could put some downward pressure on iPhone 15 units post product launch this week," he wrote.

At Tuesday's launch event, Apple announced that its new iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max will all come with USB-C chargers. The company also will begin to ship its AirPods with USB-C ports this fall, which means consumers can finally use a single cable to charge the MacBook, AirPods and iPhone.

Apple's marketing chief Greg Joswiak said the iPhone 15 Pro and Pro Max have Apple's best cameras yet. The iPhone 15's camera sensor is moving up to 48 megapixels, from 12 megapixels on the iPhone 14 base models. There's also a feature to automatically detect portrait mode without the need to manually make the switch. Users can later pick a focal point on the picture.

Market research company International Data Corp underscored in a note that the iPhone 15 series might be fully upgraded, but it will face greater challenges in China.

Guo Tianxiang, senior analyst at market research company IDC China, said that Chinese handset makers have made progress in the segment by relying on continuous technological innovations and brand building, but Apple still has advantages in the premium smartphone space.

"In the future, however, with the return of Huawei and the efforts of other domestic Android manufacturers to establish their own high-end product rhythm and brand image, Apple will face greater challenges in China," Guo said.

Apple accounted for 67 percent of the Chinese market for high-end smartphones with unit prices above $600, while Huawei accounted for some 15.6 percent with its 4G phones in the first half, the IDC said.

Martin Yang, an analyst at investment firm Oppenheimer, said that due to the launch of Huawei's Mate 60 series, Apple's iPhone shipments in 2024 are likely to decrease by 10 million units.

A netizen, who goes by the name Happy Kuaile, said in an online post that judging by the launch event, it could be assumed that it was Apple — and not Huawei — that had been under US government restrictions for three years.

China is now the third-largest market for Apple, and it remains one of the first 40 countries and regions where the iPhone 15 lineup will become available in physical stores.

Food delivery platform Eleme said on Wednesday that it will collaborate with nearly 3,000 authorized Apple stores in over 330 cities in China to sell iPhone 15 handsets on its platform starting on Sept 22, with deliveries being as quick as 30 minutes.

Tuesday's launch event marked Apple's push heading into the fourth quarter, which is normally when the company reaches its highest sales thanks to new iPhones and a holiday season boost.

But the global smartphone market has been experiencing a decline for some time. Market research company Canalys said the worldwide smartphone market fell by 10 percent year-on-year to 258.2 million units in the second quarter.

May Zhou in Houston contributed to this story.

masi@chinadaily.com.cn