In the first three weeks since its launch, Apple’s latest iPhone generation has seen a 20% increase in sales in China compared to 2023, signaling a positive development for a device competing in the world’s largest smartphone market.
According to data from Counterpoint Research, the iPhone 16 has outperformed its predecessor since its September release. Consumers continue to gravitate toward high-end models, with sales of the Pro and Pro Max variants rising by 44% year-over-year.
While these figures only reflect the initial three weeks of sales, they suggest that Apple’s outlook for 2024 is stronger than last year. Counterpoint analyst Ivan Lam noted that production issues early last year hindered the iPhone 15 series and may have limited its initial sales. Additionally, the iPhone faced tough competition from Huawei’s Mate 60 series at this time last year, which gained traction among local consumers thanks to its domestically manufactured processors and continues to sell well.
Lam stated, “The iPhone 16 series has experienced substantial growth in the domestic market due to steady production growth, a consistent pricing strategy, and the first wave of upgrades from existing iPhone users.” He also highlighted that “the product mix has significantly improved.”
Optimism surrounding the new AI features in the iPhone has propelled Apple’s stock to an all-time high this week. However, analysts caution that the iPhone 16 may struggle in China due to a lack of local partnerships to support these AI functionalities. With Beijing banning foreign AI model development, Apple may need to seek local partnerships, such as with Baidu.
Despite a strong start, the iPhone 16 faces stiff competition from local rivals. Vivo has just launched its flagship X200 Pro, while Huawei is set to unveil its next-generation Mate devices in November. Additionally, Xiaomi and Oppo are expected to refresh their product lines by the end of the year.
For Apple, the iPhone remains the cornerstone of its business, accounting for roughly half of its revenue while also driving sales of accessories like the Apple Watch and subscription services like Apple Music. Nonetheless, the smartphone market has stagnated for years, and it remains to be seen how the latest generation will perform throughout the sales cycle.
