The iPhone Duo enters China’s crowded foldable market — and faces a price test

Apple's first folding phone is getting a tepid response Chinese consumers that are focused more on how much it costs versus existing foldables from domestic rivals.

"I won't buy it this year. I'll buy the second-generation foldable next year," one user on social media platform WeChat said, according to CNBC's translation, after Apple announced the iPhone Duo at an event on Wednesday. It's priced at 15,999 yuan ($2,230) in China.

U.S. consumers "earn US$3,000 to US$4,000 a month and buy it for US$1,999. We earn 3,000 to 4,000 yuan and spend 10,000 yuan on it," one commenter wrote on a WeChat video review translated by CNBC.

Apple shares climbed more than 3% after the launch event.

But the company faces a key test in its third-biggest market of Greater China, which generates around 17% of total revenue and is one of the world's most competitive foldable-phone markets.

Huawei, Xiaomi, Honor, Oppo and Vivo already sell devices across book-style, flip-phone and, in Huawei's case, trifold designs. That means that in China, the iPhone Duo is entering a more established category than in many other overseas markets.

Ahead of Apple's event, Xiaomi and Huawei on Monday launched new flagship foldables, the Xiaomi 18 Fold and the trifold Mate XT2, priced at 10,999 yuan and 19,999 yuan.

Apple's Duo is "cheaper than Huawei. Can you take it?" one WeChat commenter wrote.

Huawei led China's smartphone market in both the first and second quarters, according to Counterpoint. Apple was second, followed by Vivo and Oppo, the data showed.

Worldwide, Samsung has narrowly reclaimed the lead over Apple by smartphone shipments in the second quarter, while Xiaomi ranked third, according to Counterpoint. Earlier this year, Samsung launched a new version of its folding phone and is expected to surpass Apple in foldable market share, a sizable lead at 32% compared to Apple and Huawei at 25% and 24% respectively, according to the research.

In addition to price, users on Chinese social media also expressed concerns about the Duo's lack of a physical SIM-card slot, which may require mainland users to visit a carrier store for ID verification to activate an eSIM.

Xiaomi's 18 Fold will be available for purchase from Thursday. Huawei's Mate XT2 follows days later. Apple's iPhone Duo pre-orders are slated to begin Oct. 16 with sales commencing on Oct. 23.