Apple Stock (AAPL) Comes Out Swinging to Defy New Huawei Smartphone Challenge

Apple (AAPL) stock defied its smartphone rival Huawei today despite the Chinese giant launching a new phone to heat up competition and looking smarter in the global wearables race.

AI Enhanced

Apple stock was up 0.4% as Huawei launched its Pura 80 smartphone series today at a livestream event. Its consumer business unit head Yu Chengdong waxed lyrical about the phone’s camera capabilities and AI features, although there was no mention about who had provided the chips powering its features.

The series includes four models – Pura 80, Pura 80 Pro, Pura 80 Pro+ and Pura 80 Ultra with prices starting at $905 for the Pro series launching on June 14th.

For phone fans, the cameras use XMAGE technology and feature ultra-wide-angle and macro telephoto lenses with embedded AI that can identify objects and provide information like tourist guides.

For investors and Apple executives, the launch means a ramping up of the challenge from Huawei in China.

China Challenge

According to Canalys data, Apple’s China smartphone shipments were 42.9 million in 2024, a notable 17% YoY decline. As a result, the company’s market share fell to 15%, behind Vivo and Huawei.

Huawei’s performance was boosted by Chinese government subsidy programs in January for smartphones under $820.

Apple is also being held back by the absence of a foldable smartphone offering, underwhelming AI capabilities, and Chinese consumers now more focused on performance rather than brand.

As such it has resorted to price cuts to stay competitive.

In another blow to Apple, figures from IDC show that Huawei sold the highest number of smartwatches and wearables within the first three months of this year, securing top place in the market. That was above Chinese rival Xiaomi (XIACF) and Apple.

Is AAPL a Good Stock to Buy Now?

On TipRanks, AAPL has a Moderate Buy consensus based on 16 Buy, 9 Hold and 4 Sell ratings. Its highest price target is $300. AAPL stock’s consensus price target is $226.94 implying a 11.98% upside.

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