iPhone 16 Sales In China Surpass Expectations Amid Uncertainty

As we await Apple’s quarterly earnings announcement this month, early indications suggest that the iPhone 16 series is experiencing a strong sales performance. A recent report highlights significant launch figures in China, showcasing Apple’s resilience despite challenges related to its rollout of Apple Intelligence.

Impressive Gains for iPhone 16 Pro Compared to 15 Pro

In a report by Bloomberg, Vlad Savov shares:

In its first three weeks, sales of Apple’s latest iPhones in China have surged by 20% compared to the models released in 2023. This marks a positive shift for a device that faced challenges in gaining traction within the world’s largest smartphone market this year.

The iPhone 16, which launched in September, has shown stronger sales than its predecessor, as noted by Counterpoint Research data shared with Bloomberg. There’s a noticeable trend of consumers leaning towards the higher-end models, with sales of the Pro and Pro Max variants increasing by 44% compared to last year’s releases.

Previous analyses have already suggested that the iPhone 16 is off to a favorable start, but it’s particularly encouraging to observe this trend in China for two main reasons:

1. The iPhone has faced increasing competition in China, with consumer interest shifting towards AI and foldable devices.
2. The impact of Apple Intelligence on sales remains uncertain, as China presents one of the most unpredictable markets concerning this rollout.

The Uncertain Future of Apple Intelligence

Apple Intelligence is slated to roll out by the end of this month, but initially, it will only support US English. However, users worldwide can still access certain AI features if their devices are configured to US English settings.

Notably, China and the EU are exceptions to this general rule. The situation in the EU is complicated, and the hurdles for enabling Apple Intelligence in China could be even more significant. Analysts have cautioned that the iPhone 16 could struggle in China due to a lack of local partnerships to facilitate AI features. Beijing’s restrictions on foreign AI models imply that Apple may need to collaborate with a local firm, such as Baidu Inc., to navigate these challenges.

As highlighted by Savov, the absence of a local partner for AI capabilities could hinder the iPhone 16’s acceptance in the Chinese market, raising concerns about its performance in a landscape where competition is fierce.

What role do you believe Apple Intelligence plays in influencing iPhone 16 purchases? Share your thoughts in the comments below.