Sales of Apple’s latest iPhones in China rose 20 percent in the first three weeks compared to the 2023 model, a positive sign for a device that has struggled to gain traction in the world’s biggest smartphone market this year.
According to Counterpoint Research data provided by Bloomberg News, the iPhone 16 debuted in September and has so far outsold its predecessor. Consumers continue to upgrade to more expensive models, with sales of the top-of-the-line Pro and Pro Max models up 44 percent year-over-year.
Although this is only a three-week snapshot, the data suggests that Apple’s 2024 launch looks better than last year’s. According to Counterpoint analyst Ivan Lam, production issues hampered the iPhone 15 family early on, which could limit initial sales. Apple’s marquee device also faced a serious challenge from Huawei Technologies’ Mate 60 series, which won over local consumers with a Chinese-made processor. According to Lam, the device continues to sell well.
“Given the smooth production ramp-up, consistent pricing strategy and the initial wave of upgrades by existing iPhone users, the iPhone 16 series has experienced significant growth in the Chinese domestic market,” Lam said. “The range of products has also improved significantly.”
Apple shares rose to record highs this week on optimism about an artificial intelligence (AI)-powered iPhone. Analysts have warned that the iPhone 16 may not perform well in China, given the lack of a local partner to support AI features. Beijing has banned AI models developed abroad, meaning Apple may have to find a local partner such as Baidu Inc.
Despite the good start, the iPhone 16 will face a number of big local competitors this year. Vivo just announced its new X200 Pro flagship, Huawei is expected to unveil its next-generation Mate device in November, and Xiaomi and Oppo are set to update their lineups before the end of the year. China remains the world’s largest — and, according to Apple Chief Executive Tim Cook, the most competitive — smartphone market in the world.
For Apple, the iPhone remains by far the most important product, as it directly drives about half of all sales and drives consumers to purchase accessories such as the Apple Watch or subscription services such as Apple Music. But the smartphone market has been stagnant for years, and it remains to be seen how well the latest generation will perform throughout its lifetime.
The iPhone 16 debuts after a difficult 2023, when the world’s second-largest economy struggled to escape a post-Covid funk. This decline intensified in 2024 with the real estate crisis. Some Chinese consumers may now delay big purchases until Singles’ Day discounts from retailers such as Alibaba Group Holding and JD.com kick in in November, Lam said.
© 2024 Bloomberg LP
(This story was not edited by NDTV staff and was automatically generated from a syndicated feed.)