Chinese tech giant Huawei Technologies Co. has launched its latest series of smartphones, the Pura 70, in a move to further challenge Tim Cook's Apple Inc. (NASDAQ:AAPL) in the high-end segment of the Chinese market amid falling iPhone sales.
What Happened: Huawei unveiled the Pura 70 series on Thursday, with prices starting at $760 and going up to $1,380 for the Ultra edition, reported Bloomberg. The Ultra model features a retractable camera with an adjustable aperture, a feature uncommon in consumer phones.
The Pura series is a continuation of Huawei's resurgence, which began with the 2023 release of the Mate 60 series. The Mate 60, powered by a Kirin 9000 processor, played a significant role in the decline of iPhone sales in China, helping Huawei outpace its domestic competitors.
The Pura series, formerly known as the P series, has historically been popular for its camera capabilities. This new release is expected to further intensify the competition with Apple, which is not due for an upgrade until September.
Even then, Apple's iPhone 16 launch in September is expected to be countered by Huawei with its Mate 70 series.
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Why It Matters: Apple has been facing challenges in the Chinese market, with a significant decline in iPhone sales. This has raised concerns about the company's future in the region, as highlighted by analysts warning of a potential revenue in the calendar year 2024.
"Mad Money" host Jim Cramer thinks owning the Apple stock "will hurt right now" after iPhone sales in China fell 33% year-on-year in February.
Despite these challenges, some analysts, such as Dan Ives from Wedbush, remain optimistic about Apple's future in China, suggesting that the company's fortunes could soon turn around.
However, Huawei's latest move with the Pura 70 series could further disrupt Apple's position in the Chinese market, adding to the challenges the tech giant is already facing. This development could have a significant impact on Apple's future in China, a key market for the company.
Price Action: Apple stock closed 0.81% down at $168 on Wednesday, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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