Great News for Apple: iPhone 16 Is Having A Strong Start in The Chinese Market

Earlier this year, Apple's iPhone sales were lackluster, with a 19% decline in sales in China in the first quarter, and weak sales also dragged down Apple's revenue in the third fiscal quarter. Currently, with the release of the iPhone 16 in September, there are signs of a rebound in iPhone sales in China.

On October 18th, according to data from Counterpoint Research, the iPhone 16 series saw a 20% increase in sales in the first three weeks of its launch in China. So far, the new iPhone has outperformed Apple's previous generations of products. Consumers continue to shift towards higher-priced models, with sales of the high-end Pro and Pro Max models increasing by 44% compared to the same period last year.

Analysts point out that although these are only data from the first three weeks of the launch, it is a positive signal for Apple, and this year's launch event is also better than last year's. The iPhone contributes about half of Apple's sales, and the recovery of iPhone demand may attract consumers to purchase accessories such as the Apple Watch or subscribe to services like Apple Music.

Counterpoint analyst Ivan Lam said that the iPhone 15 series was affected by production issues in the early stages, which may have limited initial sales. He added: "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."

Despite the good start, the iPhone 16 still faces many domestic big-name competitors this year. Vivo has just released its new flagship product X200 Pro, Huawei is expected to launch its next-generation Mate devices in November, and Xiaomi and Oppo will also update their product lines before the end of the year. According to Lam, Apple's phones face a strong challenge from the Huawei Mate 60 series, and Huawei's phone sales are still very good.

In addition, according to preliminary data from Counterpoint Research's Smartphone 360 Tracker, global smartphone sales grew by 2% year-on-year in the third quarter of 2024, marking the first year-on-year growth in the third quarter since the third quarter of 2018. Most markets have recovered in the third quarter, led by Western Europe, Latin America (LATAM), and Japan, all recording double-digit year-on-year percentage growth.

In terms of brand dynamics, the agency's research director Tarun Pathak commented: "Samsung and Apple retained the top two spots in Q3 2024, followed by Xiaomi, OPPO, and Vivo."