Apple's New CEO Faces AI Test as Foldable iPhone Takes Centre Stage Amid Fierce Competition from Huawei and Xiaomi

When new Apple CEO John Ternus unveils the company's latest products on Wednesday, Wall Street expects him to demonstrate that Apple can still deliver breakthrough hardware and a Siri virtual assistant capable of competing in the AI race. Analysts expect Apple to announce a foldable iPhone that opens like a passport, which could quickly emerge as the category leader despite an expected price of more than $2 500.

Foldable iPhone's Market Position

The main appeal of a folding phone is the sheer newness after nearly two decades of candybar-style phones. While Samsung and Huawei have sold folding phones since 2019, analysts expect Apple to benefit from entering late by solving key engineering challenges, such as a sturdy hinge and minimizing screen crease. IDC's Nabila Popal expects the phone to generate more than $45 billion in revenue for Apple by the end of next year.

Siri Overhaul and AI Ambitions

Apple has announced a deep overhaul of Siri — in part by tapping Google's AI technology — which may prove to be Ternus' first big success after years of delays. Analysts say Ternus, who kept a low profile as hardware engineering chief, is likely to focus on delivering powerful devices as a base to expand on-device AI. However, he faces regulatory challenges, with the Siri update potentially taking until 2028 to win approval in China and initially unavailable in Europe due to a regulatory dispute.

Huawei and Xiaomi Launch New Foldables

Huawei and Xiaomi launched new flagship foldable smartphones on Monday, stepping up competition ahead of Apple's event. Huawei's new Mate XT2 series, which folds out twice into a tablet-sized screen, features its Kirin 9050 Pro chip and a privacy screen. The devices are priced from 19 999 yuan ($2 980). Huawei's new chip design delivers greater computing power while using less electricity.

Xiaomi unveiled its most premium phone to date, the Xiaomi 18 Fold, featuring Xiaomi's in-house XRing O3 AI processor, which CEO Lei Jun said outperforms Apple's A19 Pro in responsiveness. The phone weighs 219 grams and is priced from 10 999 yuan ($1 540). Both Huawei and Xiaomi cited rising memory costs as a pricing challenge.

Market Sentiment: 

The sentiment is cautiously optimistic for Apple but tempered by intense competition and execution risks. The foldable iPhone's expected $2 500+ price tag positions it as a luxury niche product rather than a mass-market driver, though IDC's $45 billion revenue projection suggests significant potential. Ternus's ability to deliver a compelling Siri AI experience after years of delays will be critical to his early credibility. The chart highlights Huawei's rapid foldable market share growth from 25% to 36%, while Samsung remains the leader despite a slight decline. The competitive landscape is intensifying, with Huawei and Xiaomi launching new products at lower price points. Apple's delayed entry into foldables carries risk, but the company's history of perfecting new categories could make it a dominant player. The regulatory hurdles in China and Europe are significant, potentially limiting the Siri rollout to the US initially. The market is watching for signs that Apple can maintain its premium positioning while delivering AI and hardware innovations that justify the price. The next catalysts will be the product launch and consumer reception. The sentiment is cautiously positive, but the risks are significant. The foldable iPhone's success will depend on execution, pricing strategy, and Siri's AI capabilities. The market is likely to respond positively to a polished product. The competition from Huawei and Xiaomi, which are offering cheaper alternatives with competitive hardware, adds pressure. The long-term outlook for Apple remains positive, but the near-term path is uncertain. The market is watching closely for Ternus's performance and the consumer adoption of the foldable phone. The next few months will be critical in determining the product's success.

Disclaimer:
This content has been generated using AI technology and is intended for informational purposes only. While efforts have been made to ensure accuracy and relevance, this text should not be considered professional advice or an official statement. Always verify information from authoritative sources before making any decisions. This is not financial advice.