In a surprising twist, Apple Inc. (AAPL) is under pressure as Huawei has just unveiled its latest innovation – the Mate XTs, a groundbreaking trifold smartphone that morphs into a tablet-sized screen. This bold move comes just days before Apple’s highly anticipated iPhone 17 launch.

Following Huawei's reveal, Apple’s stock saw a slip of about 0.5%, raising eyebrows among investors who are closely monitoring this dynamic market shift. With Huawei already dominating 75% of China's foldable market, the launch of the Mate XTs, priced between $2,520 and $3,020, is a strategic gamble aimed at solidifying its lead in the foldable arena.

The Mate XTs are more than just a phone; they represent the future of mobile technology and have already made waves, with last year’s Mate XT generating a staggering $1.3 billion in revenue. Notably, Huawei's resurgence has seen the company reclaim the top spot in China, shipping 12.2 million smartphones in the second quarter—a jaw-dropping 15% increase compared to last year.

In stark contrast, Apple experienced a modest 4% increase with 10.1 million units sold, landing it in fifth place. With China accounting for nearly 20% of Apple’s total revenue, the stakes couldn’t be higher.

Apple is expected to retaliate with the iPhone 17 Air, launching on September 9, with prices ranging from $949 to $999. While analysts maintain a cautiously optimistic outlook with a consensus price target of around $239, all eyes will be on how the iPhone 17 measures up against Huawei's formidable new offering.

As the smartphone wars escalate, the question remains: Can Apple regain its momentum in its most crucial overseas market? The coming weeks will be critical in determining whether innovation or brand loyalty will prevail.