Sales of Apple’s newest iPhones in China rose 20% in the first three weeks compared with the 2023 model, a positive sign for a device that has struggled this year to gain traction in the world’s biggest smartphone market.
The iPhone 16 debuted in September and has outperformed its predecessor so far, according to data from Counterpoint Research provided to Bloomberg News. Consumers continue to switch to more expensive models, and sales of the top-of-the-line Pro and Pro Max models are up 44% compared to last year’s counterparts.
Although it’s just a three-week preview, the data suggests that Apple’s 2024 launch is faring better than last year’s. Production issues hampered the iPhone 15 family early on, which may have constrained initial sales, said Counterpoint analyst Ivan Lam.
Apple’s beloved device also faced a strong challenge from Huawei’s Mate 60 series, which won over local consumers with a processor made in China. This device continues to sell well, according to Lam.
“Given the smooth acceleration of production, consistent pricing strategy and the initial wave of replacement by existing iPhone users, the iPhone 16 series has experienced substantial growth in the Chinese domestic market,” said Lam. “The product mix has also improved significantly .”
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Analysts have warned that the iPhone 16 could perform poorly in China given the absence of a local partner to power AI capabilities. Beijing has barred AI models developed abroad, meaning Apple may have to secure a local partner such as Baidu.
Although it’s off to a good start, the iPhone 16 faces a number of big local rivals this year. Vivo has just announced its new flagship X200 Pro, while Huawei is expected to unveil its next-generation Mate series in November and Xiaomi and Oppo are scheduled to update their flagships before the end of the year. China remains the largest smartphone market in the world — and, according to Apple CEO Tim Cook’s estimates, the most competitive in the world.
For Apple, the iPhone remains by far its most important product, as it directly contributes about half of all sales and attracts consumers to buy accessories like the Apple Watch or subscription services like Apple Music. But the smartphone market has been stagnant for years, and it remains to be seen how the latest generation will perform throughout the period it is on sale.
The iPhone 16 debuted after a difficult 2023, when the world’s second-largest economy struggled to escape a post-Covid crisis. The slowdown worsened in 2024, this time with a housing crisis. Some Chinese consumers may hold off on big purchases until November’s Singles’ Day discounts at retailers such as Alibaba and JD.com, Lam said.
