Huawei's $2,980 Mate XT2 Challenges Apple's Dominance in China

Apple's dominance in China is under threat as two Chinese rivals unveiled premium foldables ahead of its recent product event. The Mate XT2 from Huawei was priced at $2,980, while Xiaomi's 18 Fold costs $1,540. This aggressive move by Huawei and Xiaomi raises the competitive stakes for Apple in what is considered one of its most difficult major markets.

Apple held a significant share of China's smartphone market with 18.1%, but Huawei surpassed it with 22.6%. Huawei also dominated the foldable market with a 68% shipment share, further intensifying the competition. While Apple still boasts enormous firepower, with fiscal third-quarter revenue surging 16% to a record $109.4 billion, its dependence on iPhone sales is a concern.

The iPhone delivered roughly 49.6% of quarterly revenue, making it essential for Apple's next product cycle to keep high-end customers loyal without sacrificing the companywide gross margin supporting its premium valuation.