How Apple's new iPhone 16 series may have brought 'a positive sign' for company in China

Apple 's iPhone 16 has registered a strong start in the challenging Chinese market, outperforming its predecessor and exceeding expectations in the first three weeks after going on sale, a report has claimed. As per Counterpoint Research , there has been a significant increase in sales, particularly for the high-end Pro and Pro Max models, which saw a 44% jump compared to last year's equivalents.

Tarun Pathak, research director at Counterpoint Research, said that the growth in sales of Apple's newest iPhones in China is a positive sign for a device that struggled this year to gain traction in the market.

Sales of Apple'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 markethttps://t.co/TDFD05gbjc

— Tarun Pathak (@Tarunpathak) October 18, 2024

As per news agency Reuters, the US firm has been losing market share in recent quarters to domestic rivals. This success comes as a surprise to some analysts who predicted a weaker performance due to factors like the absence of a local partner for AI features and a downturn in China's economy.

What fueled Apple’s growth in China
Both Apple and Huawei's latest smartphones went on sale in China on September 20. The market research firm attributed the growth to a smooth production ramp-up, consistent pricing strategy and initial wave of upgrades from existing iPhone users.

“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. The product mix has also improved markedly,” Lam said.

While some analysts, however, remain cautious about sustained growth in the long term, others believe the iPhone 16 could be the start of a “historic” upgrade cycle.