*

IPhone 16 is first Apple ( AAPL ) smartphone designed around AI

features

*

Apple's ( AAPL ) AI tech, Apple Intelligence, so far has a release

timeline only in the U.S.

*

Huawei to announce new products hours after Apple's ( AAPL ) event

*

Google has showcased AI features to challenge Apple's ( AAPL )

dominance

(Adds Huawei pre-sales of the Mate XT and background in

paragraphs 1-7)

By Kenrick Cai

SAN FRANCISCO, Sept 9 (Reuters) - Apple ( AAPL ) on

Monday is set to unveil its iPhone 16, focusing on how its

flagship device's features are infused with artificial

intelligence, but it could be upstaged by a triple-folding

smartphone released by China's Huawei hours earlier.

Apple's ( AAPL ) event at the tech giant's Apple Park

headquarters starts at 10 a.m. PDT (1700 GMT). Huawei

has scheduled an announcement of its Mate XT phone just hours

after the Apple ( AAPL ) presentation.

The Chinese company's website showed on Monday that it

had garnered more than

3 million pre-orders

for its Z-shaped tri-fold phone. This underscores Huawei's

ability to navigate U.S. sanctions and solidifies its position

against Apple ( AAPL ) in China, where consumers are hankering for more

AI features and are willing to pay for them.

"The Chinese market is hungrier for AI features than the

U.S. market," said Ben Bajarin, CEO and principal analyst at

Creative Strategies. For Apple ( AAPL ), "it will be very difficult to

bring it to China immediately, so they'll be going off the

merits of the hardware."

Apple ( AAPL ) unveiled Apple Intelligence at its developer

conference in June, its take on generative AI that can conjure

text, images and other content on command.

But these upgrades will take time to reach consumers.

Apple Intelligence features are expected to launch in a

software update to the iPhone and iPad operating system likely

in October and a full upgrade of Apple's ( AAPL ) voice assistant Siri is

likely to come only early next year, according to media reports.

Apple Intelligence must be approved by Beijing in order

to be released in the Chinese market. In July, OpenAI blocked

access to ChatGPT in China, a move that could impact the

chatbot's integration into Siri.

IPhones accounted for more than half of Apple's ( AAPL ) $383 billion

sales last year, and the new devices are an important update for

the Cupertino, California-based company that is betting the AI

feature will drive consumers to upgrade amid a slowdown in

iPhone sales.

In China, Apple ( AAPL ) aggressively slashed prices earlier this

year, prompted by government restrictions and increased domestic

competition.

The iPhone 16 lineup will be the first Apple ( AAPL ) smartphones

designed around these AI features, though those will also be

available on iPhone 15 Pro and Pro Max, the top-end versions of

the previous-generation devices. New versions of the Apple Watch

and AirPods are also expected.

"The software side, and how Apple ( AAPL ) frames it, is the biggest

question," said Bajarin. "Investors will look for if it's

compelling enough to have a larger-than-normal upgrade cycle."

Rivals including Alphabet's Google are also

showcasing AI features to try to upend Apple's ( AAPL ) dominance in the

high-end smartphone market.

Google, developer of the Android operating system which

competes with Apple's ( AAPL ) iOS, traditionally announced its Pixel

smartphones in the autumn. This year, it pushed the event to

August ahead of Apple's ( AAPL ) announcement.

Google focused on AI features including Gemini Live, which

allows users to hold live voice conversations with a digital

assistant. Many of the AI features Google announced were also

rolled out to the Android-based devices made by manufacturers

such as Samsung and Motorola.

"The question is who is going to be the first to combine a

truly personal AI assistant with knowledge and information that

is accurate and personalized," said Bob O'Donnell, chief analyst

for TECHnalysis Research.

Apple ( AAPL ) has so far shared a timeline for the release of Apple

Intelligence only in the United States, where it is slated to

launch on compatible devices in the autumn.

In June, one week after its developer conference, Apple ( AAPL ) said

it would delay the release in Europe due to European Union tech

rules.