Apple sees decline in Chinese iPhone 16 sales due to AI competition

Local brands gain market share as Apple Intelligence waits for approval

Trade

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Sales of Apple’s iPhone 16 fell by double digits year-on-year during Singles’ Day – the Chinese equivalent of Black Friday and the world’s largest shopping day.

Apple faced stiff competition from Chinese manufacturers, losing market share to brands such as Vivo, Huawei, Xiaomi, Honor and Oppo.

Regulatory hurdles in China slowed Apple’s AI-driven upgrade cycle, allowing competitors to gain ground.

Wall Street analysts have been closely watching the performance of the iPhone 16’s upgrades, expecting a significant sales increase thanks to advances in artificial intelligence. However, recent data suggests that this anticipated AI-driven upgrade supercycle has not lived up to expectations.

Reports from Counterpoint Research show that during Singles’ Day iPhone 16 sales fell by double digits from last year. Consumers preferred domestic smartphone brands, which launched many new flagship models during the shopping period. This fierce competition from Chinese manufacturers put pressure on Apple’s market position.

Despite the discounts and offers during Singles’ Day, Apple faced a challenging environment in the world’s largest smartphone market. Chinese brands such as Vivo, Huawei, Xiaomi, Honor and Oppo are rapidly gaining market share, pushing Apple into sixth place with about 13.5% of the market. This trend is attributed to several factors, including economic headwinds affecting consumer spending and a growing preference for domestically produced goods.

In addition, Apple’s AI-driven upgrade cycle has been delayed because Beijing has yet to approve its AI services. This regulatory hurdle has allowed competitors such as Huawei to gain ground. Huawei plans to release its most powerful Mate smartphone this month, further intensifying competition in the Chinese market.

The underperformance of the iPhone 16 raises questions about Apple’s ability to maintain its dominance in a rapidly evolving smartphone landscape dominated by AI-driven innovations from domestic competitors.

Business AM

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