By Apple’s latest iPhone 16 series brings encouraging news for the company in China. According to Bloomberg, sales of the new iPhone in China have surged, with data from research firm Counterpoint showing a 20% increase in the first three weeks compared to the 2023 model. This is a promising development for Apple, especially after facing difficulties in the vital Chinese market last year. While the smartphone market remains relatively flat, the iPhone continues to be Apple’s most important product, accounting for nearly half of its revenue. The strong performance of the iPhone in China bodes well for Apple’s overall growth.
Strong Start for iPhone 16 in China
The early success of the iPhone 16 can be attributed to several key factors. According to Counterpoint analyst Ivan Lam, a seamless production ramp-up, stable pricing, and upgrades from existing users have all driven “substantial growth” in the Chinese market.
Pro Models in High Demand
Consumers are increasingly opting for premium versions, with sales of the high-end Pro and Pro Max models surging by 44% compared to their predecessors.
Challenges on the Horizon
Despite the strong start, Apple faces stiff competition from local brands like Vivo, with its X200 Pro, and Huawei’s upcoming Mate device. Xiaomi and Oppo also pose significant threats to Apple’s market share. Additionally, the economic downturn in China could lead some consumers to postpone purchases until major events like Singles’ Day in November.
AI Feature Roadblocks
Although the iPhone 16 introduces AI capabilities, Apple faces challenges in fully implementing these features in China due to the absence of a local AI partner. With Beijing restricting foreign AI models, analysts suggest that Apple may need to collaborate with a domestic company, such as Baidu, to overcome these barriers.
Long-Term Prospects
While the iPhone 16 has enjoyed a strong launch, its long-term success will depend on how well Apple navigates the intense competition and the ongoing economic challenges in China.
