Just after Apple (AAPL) unveiled the new iPhone 16 on Monday, Huawei Technologies, a Chinese phone maker, announced a new trifold device. Bank of America senior IT hardware analyst Wamsi Mohan joined Seana Smith and Brad Smith to discuss how the new Huawei phone could affect competition in the China region.

Huawei "is a formidable competitor" to Apple amid increased competition in the China market, Mohan tells Yahoo Finance. Mohan argues the combination of Apple Intelligence and competition from the new Huawei device is "relatively net neutral" for Apple in the country, highlighting that the iPhone maker said support for Apple Intelligence in the Chinese language is coming in 2025.

"Apple will continue to take share in China in the long run," Mohan said. Apple is "giving up some cyclical share" in the near term, he noted, adding that Bank of America analysts are "very optimistic about the China potential" in the long term as the middle class grows in the region. "All of that is going to add incremental users into the Apple ecosystem."