Apple Inc. (AAPL) is hoping the iPhone X will cement its position in China after years of sales declines. But with a domestic starting price tag of $999, that could be a huge deterrent for the company.

China has long been a problem for the iPhone maker, but in recent months it has been moving to regain its luster in the world's most populous country. It recently hired its first vice president and managing director for greater China, it is gearing up to open up two research centers in the country and even kicked VPN apps that ran afoul of local rules off its iTunes store. (See also: Apple Unveils iPhone X, 8, New Watch, Apple TV 4K.)

While many middle-class consumers have money to spend on high-end goods, when it comes to smartphones, local competitors are churning out reasonably advanced devices at a fraction of the cost of foreign makers. According to The Wall Street Journal, the prices for domestic smartphones start at around $100. With a price tag of $1,300—$300 more than in the U.S.—an iPhone X will be out of the reach of most in China. Canalys, the market research firm, told the Journal that the iPhone X is simply too expensive. In May, market research firm Gartner said Huawei was in third place in the first three months of this year, shipping 34.2 million units. That compares to Apple, which was in second place with unit shipments of 52 million. Samsung Electronics held the top spot with shipments of 78.7 million during the first quarter.

X Marks the Spot

While Huawei has been known to churn out low-cost smartphones, earlier this year it rolled out the P10 phone, which goes for close to $700 and includes features expected in pricier devices such a dual cameras. In October, the Journal reported the Chinese smartphone maker is rolling out the Mate 10 phone, which is rumored to have a processor that can handle photo-enhancing artificial intelligence. Its also expected to boast a longer battery and speedier charging. That device hasn’t been priced yet, but the Journal noted it tends to set prices below Apple's. But it's not just Huawei that Apple has to contend with. Xiaomi of China launched the Mi Mix 2 smartphone this week, which has a edge-to-edge display and will go for between $500 and $720. (See also: Augmented Reality Worth $9B to Apple: Morgan Stanley.)

The new X phone comes with a curved OLED display that fits edge to edge, top to bottom, and with glass on both the front and back of the phone. To get the device working, users just have to swipe the screen now that the home button is no more. Its engineered to be water and dust resistant, has a super Retina display, dual cameras, a battery life that is two hours longer than the iPhone 7, wireless charging and comes in space gray or silver. Apple also rolled out Face ID on the iPhone X. In order to unlock the phone, the user just has to look at it. The biometric tool also works with Apple Pay and third-party apps. The phone has been designed to support augmented reality. The iPhone X starts at $999. There will be a 64GB and 256GB versions available. Orders will start Oct. 27, and shipping will begin Nov. 3.

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