Apple's iPhone 16 Sees Strong Start in China, Sales Up 20% Year-on-Year

Apple's iPhone 16 Sees Strong Start in China, Sales Up 20% Year-on-YearAccording to market research firm Counterpoint, Apple's newly released iPhone 16 has enjoyed a strong start in China, with sales growing 20% in the first three weeks after launch compared to the iPhone 15 in 2023. The high-end iPhone 16 Pro and Pro Max models were particularly successful, with sales increasing 44% compared to their counterparts in 2023

Apple's iPhone 16 Sees Strong Start in China, Sales Up 20% Year-on-Year

According to market research firm Counterpoint, Apple's newly released iPhone 16 has enjoyed a strong start in China, with sales growing 20% in the first three weeks after launch compared to the iPhone 15 in 2023. The high-end iPhone 16 Pro and Pro Max models were particularly successful, with sales increasing 44% compared to their counterparts in 2023. Counterpoint stated, "We are seeing very strong sales for the iPhone 16 series in China."

Counterpoint analysts attributed the growth to smoother production and pricing strategies for this year's iPhone, unlike last year's iPhone 15, which faced initial production issues that restricted sales. Despite concerns that the absence of Apple's AI features (Apple Intelligence) on iPhones purchased in mainland China might impact sales, early figures show that demand for the iPhone 16 in China is exceeding expectations.

Analysts predict this generation of iPhones could mark a "historic" upgrade cycle. Wedbush Securities analyst Dan Ives stated that the iPhone 16's strong initial sales indicate a significant Chinese market recovery, driving Apple's so-called "growth renaissance." Ives connects this expansion to the start of an AI-driven supercycle led by the iPhone 16, maintaining an "Outperform" rating and $300 price target for Apple. He further highlights the potential of Apple's AI collaboration with Baidu in China to effectively boost iPhone sales. Looking ahead, with the AI-powered upgrade cycle heating up, Ives forecasts Apple's iPhone shipments to surpass 240 million units in fiscal 2025, noting that 100 million iPhones will be eligible for upgrades in 2025.

Despite the iPhone 16's strong start in China, Apple still faces fierce competition from domestic brands like Huawei, Vivo, and Xiaomi. Counterpoint data also reveals that iPhone's overall sales in China declined by 2% year-on-year in the past three weeks. This decline is attributed to lower sales of older models and intensified competition from Huawei's Mate and Pura series phones. Huawei's latest smartphone launched in China on September 20, coinciding with Apple's release, showcasing the escalating competition in China, the world's largest smartphone market. In recent quarters, Apple has seen its market share decline in China, eroded by domestic rivals.

Overall, the iPhone 16's strong debut indicates Apple's continued strong appeal in China, but with the rise of domestic brands and increasing competition, Apple needs to consistently innovate and optimize its products to maintain its leading position. The integration of AI will be a key selling point for the iPhone 16, but whether it can truly drive sales growth remains to be seen.