Apple's iPhone 8 will likely feature a 5.8-inch organic light-emitting diode touch screen, 3D facial recognition, front and back glass casing, a main camera that supports so-called augmented reality applications, wireless charging and a price tag of about US$1,000 (NZ$1330), according to J P Morgan.
Two other new iPhones that Apple is anticipated to release in the third quarter are models with 4.7-inch and 5.5-inch liquid crystal display touch screens.
Yu said the high-end Mate 10 will be available in October to compete head to head with the new iPhone around the world.
Without providing details, he said the Mate 10 could be powered by Huawei's first-ever processor with an advanced machine learning algorithm to improve user experience.
Since formal specifications for the Mate 10 and iPhone 8 are yet to be announced, it is difficult to make a comparison between the two models, according to Tay Xiaohan, a senior market analyst at technology research firm IDC. She said the Mate 10 is expected to cost around US$500, while the special-edition iPhone will be priced higher.
"There will also be a lot of Apple fans holding out for the latest iPhone given the hype about it," Tay said. "So I think it will be challenging for the Mate 10 to compete head on against the new iPhone."
Shenzhen-based Huawei last week announced that it shipped 73 million smartphones in the first six months of this year, up 20.6 per cent from the same period last year. It said that growth reflected Huawei's rise as a globally recognised premium brand.
Released in November last year, Huawei's high-end Mate 9 series currently in the market has so far sold 8.5 million units worldwide, the company said.
The Mate 9 is powered by the Kirin 960 multi-core processor, which reduces power consumption by 15 per cent. The chipset was designed by HiSilicon Technologies, a subsidiary of Huawei.
The 4G smartphone also has a dual camera module powered by optics from Germany's Leica Camera and a high-density battery with Huawei's SuperCharge technology, which provides more than two days of battery life when fully charged.