Apple’s AAPL The iPhone 16 was a winner in China in its first three weeks, highlighting the growing demand for premium smartphones with artificial intelligence capabilities. China is an important market for the company.
The iPhone 16’s performance coincided with China’s stimulus package and the upcoming holiday season.
Citing data from Counterpoint Research, Bloomberg reported that Apple’s latest smartphone model posted 20% year-over-year sales growth in its first three weeks, outpacing the iPhone 15.
Also read: Apple plans to launch low-cost iPhone in 2025, aiming to capture market share from Huawei and Xiaomi
The move to premium models led to a 44% year-over-year increase in sales for the top-of-the-line Pro and Pro Max models.
Counterpoint’s Ivan Lam attributes the iPhone 15’s weak initial response to production issues and competition from the United States. Huawei’s Mate 60 series.
However, the following issues lurk in iPhones manufactured by Chinese domestic companies. Vivo’s X200 Pro flagship, Huawei’s next-generation Mate device, and Xiaomi Co., Ltd. Siasi XIACF and Oppo’s Future product offerings.
Lam also warned Chinese consumers to postpone purchases until Singles’ Day in November to take advantage of discounts. alibaba group holding Baba and JD.com Co., Ltd. J.D..
According to another report, Chinese online retailers PDD Holdings Co., Ltd. P.D.D. Pinduoduo and Alibaba’s Taobao offered discounts on the iPhone 16 series ahead of their official release, citing the lack of AI features that are likely to be rolled out to Chinese users in 2025.
Pinduoduo has started selling the iPhone 16 Plus with 512 GB of storage at a 10% discount off the official price. The 128GB iPhone 16 is on sale at an even greater discount of 11%.
Both Pinduoduo and Taobao marketplaces are offering 4% off on the 256GB version of the high-end iPhone 16 Pro Max. The Tmall shopping platform also offers buyers the option to pay for a new Apple device in 24 interest-free installments.
Kuo Ming-chi of TF International Securities told SCMP that global pre-order sales for the iPhone 16 are down 13% compared to last year’s iPhone 15 launch due to the absence of Apple Intelligence and strong competition in China. He said he was there.
International Data Corporation (IDC) had predicted a recovery in the smartphone market, but it was hampered by the supply chain crisis caused by the pandemic that originated in China in 2020.
IDC pointed to the success of generative AI in the upcoming iPhone 16 and Apple’s ability to establish local AI partnerships in China as potential growth factors. The company predicts that GenAI smartphones will capture 18% of the market by 2024, driven by the trend for premium devices.
Apple stock has risen 39% in the past six months. Investors can gain exposure to stocks through: Vanguard S&P 500 ETF VOO and Invesco QQQ Trust, Series 1 QQQ.
Price action: AAPL stock traded 1.79% premarket at $236.30 at last check Friday.
Also read:
Photo courtesy of Apple
Market news and data powered by Benzinga API
© 2024 Benzinga.com. Benzinga does not provide investment advice. Unauthorized reproduction is prohibited.
