Tim Cook Explains Why Not To Worry About iPhone Miss In China

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In the latest earnings report for the pivotal holiday quarter, Apple has announced record-breaking overall performance. However, iPhone sales fell short of predictions, largely due to challenges in the Chinese market. According to CEO Tim Cook, the standout message is that the iPhone 16 was particularly popular in regions where Apple Intelligence was operational.

iPhone 16 Sales Thrived in Regions with AI Features, Cook Reports

The conversation around consumer interest in Apple Intelligence has been quite lively.

Initially, the rollout of the AI features alongside the iPhone 16 was met with enthusiasm, but the crucial question remained: would these features encourage customers to upgrade?

As Tim Cook shared on CNBC, the answer appears to be affirmative.

Speaking to CNBC’s Steve Kovach, Cook highlighted that iPhone sales were more robust in countries where Apple Intelligence has been launched. At present, this software is limited to a few English-speaking nations, and it has not yet reached the Chinese market.

“In the December quarter, we noticed that in markets where Apple Intelligence was available, the iPhone 16 family performed better year-over-year compared to markets without this rollout,” Cook stated.

Currently, Apple Intelligence remains unavailable in China. Furthermore, in the European Union, it won’t be accessible on iPhones or iPads until the release of iOS 18.4 in April.

The absence of AI features in China has negatively impacted iPhone 16 sales, a significant concern for the company.

Cook elaborated that three key factors influenced Apple’s performance in China. He noted that 50% of the decline, totaling 11.1%, was attributed to changes in channel inventory, the lack of Apple Intelligence in the region, and a national subsidy by China aimed at promoting sales of Apple products after the quarter closed.

This last factor suggests there could be an uptick in iPhone sales in the next quarter. However, if Cook’s assertion regarding AI’s positive impact on sales holds true, any growth may be fleeting without a confirmed launch of Apple Intelligence in China.