Apple's iPhone 16 range recorded 20 percent sales growth in China for the first three weeks of sales, more than when the iPhone 15 was launched in 2023.
Despite stiff competition from Huawei, a strong local competitor, new handsets from the latter hit the market at the same time.
iPhone 16 Sales Compare Favorably With the iPhone 15 Sales in China
Perhaps most importantly, from an investor's and a businessperson's point of view, it has had a different story to tell for itself in China. The iPhone 16 lineup outsold its predecessor, the iPhone 15, by almost a fifth during its early release phase, Counterpoint Research said via Reuters.
That is especially impressive since the iPhone 15 had been seen as a success when it was released last year, so the continued success of the iPhone 16 would be all the more surprising.
Although Huawei is giving Apple an extremely tough time, the latest Apple range has managed to draw much attention in China. So, from that point of view, it seems that demand for Apple's innovation does have a great appetite.
iPhone 16 Pro Models Lead the Charge
Like in the U.S. market, the China market has also experienced growth mainly driven by the more expensive iPhone 16 Pro and iPhone 16 Pro Max. The premium versions had an enormous surge of 44% in sales compared to their 2023 counterparts.
Higher consumer demand for quality features—from more advanced camera systems, higher processing power, and Dynamic Island technology, indicate that these matters take precedence for consumers.
Apple Insider reports that the iPhone 16 Pro models recorded success while at the same time, Apple sales in China declined by 2% year over year. This minimal decline is said to be traced to a decline in the selling of older iPhone models and the competition due to newer Huawei devices.
Apple Intelligence Calls for Newer iPhone Models
One of the factors for the decreased sales of older iPhones is Apple has recently become reliant on its newer models to execute full functionality.
Only the iPhone 15 Pro, iPhone 15 Pro Max, and the iPhone 16 series come with the features of Apple's advanced technology, Apple Intelligence. Most of the consumers would want to enjoy those kinds of features making them upgrade their phones, and therefore, the sales of older iPhone versions are fewer.
What's Next for Apple in China?
Analysts, including JP Morgan, have said Apple's China performance would rebound from several quarters of decline. The strong early sales for the iPhone 16 in China bode well, but if trends continue with the iPhone 15, Apple could be in for trouble: sales to crater after a sharp increase.
For a few months following its strong launch, sales for iPhone 15 were sharply lower than those of the prior month.
Even though the Chinese market is a lifeline for the company in its global strategy, the company would have to stay ahead of the game especially with Huawei coming up with other great alternatives.
Still, the success the iPhone 16 recorded upon release gives surety that the company remains on top when it comes to China's premium smartphone markets.
