There is a Bloomberg report that cites Counterpoint Analysis information and notes that the iPhone 16 collection (debuted in September 2024) has “outperformed” its predecessor. General, the information exhibits that customers nonetheless want to get the pricier fashions, a lot in order that the iPhone 16 Professional and the iPhone 16 Professional Max gained 44% in contrast with 2023.
Though the information covers simply the preliminary three weeks, it signifies that Apple’s 2024 launch is performing higher than the earlier 12 months’s. In 2023, manufacturing challenges affected the early gross sales of the iPhone 15 lineup, doubtless limiting its preliminary success, in response to Counterpoint analyst Ivan Lam.
On the identical time, Apple’s flagship product confronted robust competitors from Huawei Applied sciences’ Mate 60 collection, which attracted native consumers with its Chinese language-made processor. That system continues to carry out properly out there, as famous by Lam.
Lam highlighted that, with a smoother manufacturing course of, constant pricing, and a robust response from present iPhone customers upgrading to the brand new fashions, the iPhone 16 collection has seen important progress in China. He additionally identified a noticeable enchancment within the product combine.
Regardless of earlier considerations from analysts that the iPhone 16 may wrestle in China as a result of lack of an area accomplice for its AI options, the collection has been performing properly. With Beijing’s restrictions on foreign-developed AI fashions, Apple could finally must accomplice with a Chinese language firm like Baidu Inc. to proceed its progress within the area.
As you most likely know, iPhone 16 consumers within the EU are additionally unlikely to see all of the Apple Intelligence options anytime quickly due to strict laws on the Previous Continent. Chinese language customers might need the most effective probability of experiencing Apple’s generative AI after the iOS 18 replace, however there is a huge “if”.
Within the US, Apple has partnered with OpenAI for its ChatGPT-based generative AI service.Nevertheless, in China, solely native generative AI corporations have been granted approval for his or her fashions, and ChatGPT just isn’t accessible commercially. Rumors recommend that Apple could collaborate with native tech large Baidu for its Ernie LLM, just like Samsung’s strategy within the area. This potential partnership might delay the introduction of Apple’s personal AI options in China.
In the meantime, Apple is underneath growing strain from native rivals like Huawei, which noticed a staggering 44% current progress in shipments inside China, in comparison with Apple’s 6% decline reported earlier. Ivan Lam from Counterpoint Analysis famous that Apple’s iPhone is prone to proceed shedding floor within the premium phase to Huawei and different Chinese language manufacturers.
Hit and miss?
The iPhone 16 Professional performs higher than the iPhone 15 Professional from final 12 months – not less than in its first three weeks. | Picture credit score – PhoneArena
That is my very own private tackle issues, additionally: simply three weeks of gross sales just isn’t sufficient to say that the iPhone 16 is successful within the Far East. Even when it sells properly for one more week or two, issues may take one other course. Particularly whenever you’ve received wonderful gadgets from the competitors just like the just-released Vivo X200.
In distinction, Wedbush analysts expressed a extra optimistic outlook, predicting that this iPhone improve cycle might be a “historic” one. They count on iPhone 16 gross sales in China to indicate a big rebound within the coming 12 months, pushed by what they described as the start of an AI-driven supercycle.
Regardless of its sturdy begin, the iPhone 16 is dealing with stiff competitors from a number of main native rivals this 12 months. Vivo has simply launched its new aforementioned flagship, Huawei is making ready to launch its next-generation Mate system in November, and each Xiaomi and Oppo plan to replace their product traces earlier than the tip of the 12 months. China stays the biggest and, within the view of Apple CEO Tim Cook dinner, probably the most aggressive smartphone market on the earth.
For Apple, the iPhone stays its most crucial product, producing about half of its complete gross sales and attracting clients to its equipment and providers, just like the Apple Watch and Apple Music. Nevertheless, the worldwide smartphone market has been stagnant for a while, and it is unclear how properly the newest iPhone era will carry out over its lifecycle.
The iPhone 16 launch follows a difficult 2023 for China, one of many world’s largest economies (some say it is already the largest), which struggled to recuperate from the post-Covid downturn. That financial stoop worsened in 2024, exacerbated by a property disaster. Ivan Lam advised that some Chinese language shoppers may delay main purchases till Singles’ Day reductions in November.
