iPhone 16 Sales Soar 20% in China Debut as Demand Returns

tech.hindustantimes.com:

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.

While just a three-week snapshot, the data suggests Apple's 2024 launch is faring better than last year's. Production issues hampered the iPhone 15 family early on, which may have constrained initial sales, Counterpoint analyst Ivan Lam said. Apple's marquee device also faced a stiff challenge from Huawei Technologies Co.'s Mate 60 series, which won over local consumers with a made-in-China processor. That device continues to sell well, according to Lam.

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“Given the smooth production ramp-up, consistent pricing strategy, and the initial wave of upgrades by existing iPhone users, the iPhone 16 series has experienced substantial growth in the Chinese domestic market,” Lam said. “The product mix has also improved markedly.”

Apple shares rose to a record this week, fueled by optimism around the rollout of the artificial-intelligence-powered iPhones. 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.

Though off to a good start, the iPhone 16 faces a number of big local rivals this year. Vivo just announced its new X200 Pro flagship, Huawei is expected to introduce its next-generation Mate device in November and Xiaomi Corp. and Oppo are set to update their lineups before year's end. China