Apple Inc.’s iPhone 16 has made a remarkable debut in China, with sales rising by 20% in its first three weeks compared to last year’s model. This marks a positive shift for the tech giant, whose previous releases had struggled to capture consumer interest in the world’s largest smartphone market.
Launched in September, the iPhone 16 has outperformed its predecessor, according to data from Counterpoint Research. A key driver of this growth is the increased demand for Apple’s premium models, with sales of the high-end Pro and Pro Max variants surging by 44% compared to their 2023 counterparts.
While still early, these numbers suggest that Apple’s 2024 release is off to a stronger start than last year’s, which faced production challenges that limited initial sales, as noted by Counterpoint analyst Ivan Lam. The iPhone 15 launch was also overshadowed by local competition, particularly from Huawei’s Mate 60 series, which appealed to Chinese consumers with its homegrown processor. Huawei’s device continues to enjoy strong sales.
“The iPhone 16 series has seen significant growth in the Chinese market due to a smooth production process, steady pricing, and a wave of upgrades from existing iPhone users,” Lam said. “Additionally, the product mix has improved, with more consumers opting for the premium models.”
Apple Sees Boost in Market Confidence
Apple’s stock hit a record high this week, driven by optimism around the launch of the AI-powered iPhone 16. The company’s shares gained 2% in premarket trading on Friday, signaling investor confidence in the device’s performance.
However, some analysts had initially expressed concerns over the iPhone 16’s potential in China, particularly due to the lack of a local partner for AI features. Beijing has barred the use of foreign-developed AI models, meaning Apple may need to collaborate with a local tech company like Baidu Inc. to fully leverage AI capabilities in China.
Intense Competition Ahead for Apple
Despite its strong start, the iPhone 16 faces fierce competition from Chinese smartphone brands. Vivo has recently launched its X200 Pro flagship, while Huawei is expected to release its next Mate series device in November. Xiaomi and Oppo are also preparing to introduce new models before the end of the year. China remains the world’s largest and most competitive smartphone market, a point Apple’s CEO Tim Cook has repeatedly acknowledged.
For Apple, the iPhone remains its most critical product, accounting for nearly half of its annual revenue and drawing customers into its broader ecosystem of accessories and services, such as the Apple Watch and Apple Music. However, the global smartphone market has been stagnant, and it remains uncertain how the iPhone 16 will perform in the long run.
Challenges in a Tough Economic Climate
The iPhone 16 launch follows a challenging period for Apple in China. The country’s post-Covid economic recovery has been slow, with a property crisis worsening in 2024. As a result, some Chinese consumers may hold off on major purchases until November, when Singles’ Day, the country’s largest online shopping event, brings discounts from major retailers like Alibaba and JD.com.
