iPhone 16 Sales Surge in China Despite AI Uncertainty, Highlighting Market Dynamics

Apple iPhone 16 Sees 20% Sales Surge in China, But AI Absence Prompts Early Price Cuts - Alibaba Gr Hldgs (NYSE:BABA), Apple (NASDAQ:AAPL)

Top-end Pro and Pro Max models saw a 44% sales increase year-on-year Apple Inc's AAPL iPhone 16 scored a win in China in its first three weeks, highlighting the rising demand for luxury smartphones paired with artificial intelligence features. China is a crucial market for the company. The iPhone 16 performance coincided with China's stimulus plans and the upcoming holiday season. Apple's latest smartphone model clocked a sales growth of 20% year-on-year in their first three weeks, beating the iPhone 15, Bloomberg cites Counterpoint Research data. Also Read: Apple To Launch Budget iPhone in 2025, Aims for Market Share Gains from Huawei and Xiaomi The shift to the premium models fueled sales of the top-end Pro and Pro Max models by 44% year-on-year. Counterpoint's Ivan Lam attributed the iPhone 15's weak initial response to production issues and competition from Huawei Technologies Co's Mate 60 series. However, challenges continue to lurk for iPhones from China's domestic companies, like Vivo's X200 Pro flagship, Huawei's next-generation Mate device, and Xiaomi Corp XIACY XIACF and Oppo's upcoming offerings. Lam also flagged the postponement of purchases by Chinese consumers until November's Singles' Day to avail themselves of discounts from Alibaba Group Holding BABA and JD.com Inc JD. Separate reports indicated Chinese online retailers PDD Holdings Inc PDD Pinduoduo and Alibaba's Taobao doled out discounts on the iPhone 16 series ahead of its official release due to its lack of AI features, which will likely roll out for Chinese users in 2025. Pinduoduo started selling the iPhone 16 Plus with 512 gigabytes of storage at a 10% discount from the official price. The 128GB iPhone 16 is being sold at an even steeper 11% discount. Both Pinduoduo and Taobao marketplace have slapped a 4% discount on the 256GB version of the high-end iPhone 16 Pro Max. Tmall shopping platform also offers buyers the option to pay for a new Apple handset in 24 instalments without interest charges. Kuo Ming-chi of TF International Securities told SCMP that the global pre-order sales for the iPhone 16 are down 13% compared to last year's iPhone 15 launch, partly due to the absence of Apple Intelligence and intense competition in China. International Data Corporation (IDC) had projected a recovery in the smartphone market, which was hampered by the supply chain crisis fueled by the 2020 pandemic outbreak in China. IDC pointed to the success of generative AI in the upcoming iPhone 16 and Apple's ability to establish local AI partnerships in China as potential growth factors. It forecasts that GenAI smartphones will capture 18% of the market by 2024, fueled by premium device trends. Apple stock gained 39% in the last six months. Investors can gain exposure to the stock through Vanguard S&P 500 ETF VOO and Invesco QQQ Trust, Series 1 QQQ. Price Action: AAPL stock traded higher by 1.79% at $236.30 premarket at the last check on Friday. Also Read: Apple's 3nm Push Boosts Taiwan Semi's Q3, AI Revenue Set To Triple: Analyst Photo courtesy: Apple Market News and Data brought to you by Benzinga APIs

iPhone 16 sales in China are surprisingly great, despite Apple Intelligence uncertainty - 9to5Mac

Ahead of Apple's quarterly earnings later this month, we're getting a better picture of how the iPhone 16 line is selling -- and it looks very good. The latest evidence is a report on sales in China, where Apple is seeing big launch numbers despite uncertainty around its Apple Intelligence rollout. Vlad Savov writes for Bloomberg: Sales of Apple Inc.'s newest iPhones in China are up 20% in their first three weeks compared with 2023's model, a positive sign for a device that struggled this year to gain traction in the world's largest smartphone market. The iPhone 16 debuted in September and has outperformed its predecessor so far, according to Counterpoint Research data provided to Bloomberg News. Consumers continue to shift to the pricier models, and sales of the top-end Pro and Pro Max models gained 44% compared with last year's equivalents. Prior reporting has indicated the iPhone 16 is off to a generally strong start. But it's another thing entirely to see that the same is true in China. For two reasons: When Apple Intelligence launches later this month, it will only be available in US English. However, users in most of the world can still access AI features if their device is set to US English. China and the EU are two exceptions, however. While the situation in the EU is messy, the barriers to enabling Apple Intelligence in China may be even greater. Savov writes: Analysts had warned that the iPhone 16 might fare poorly in China, given the absence of a local partner to power AI features. Beijing has barred foreign-developed AI models, meaning Apple may have to secure a local partner such as Baidu Inc. Apple so far has had very little to share about bringing Apple Intelligence to China. We know that Tim Cook mentioned the company was working with local regulators in both China and the EU. And we know that the company plans to roll out support for Chinese in 2025. Hopefully, this initial wave of iPhone 16 buyers doesn't end up disappointed by a prolonged delay getting Apple Intelligence. Otherwise, the launch success could quickly turn another direction. How important do you think Apple Intelligence is to iPhone 16 buyers? Let us know in the comments.