top line
Apple’s latest smartphone, the iPhone 16, has had a strong launch in China compared to the 2023 model, a bright spot for the tech giant after months of concerns about losing ground to local rivals in the world’s biggest smartphone market. It became a sign.
According to sales data, the iPhone 16 is off to a strong start in China.
important facts
In the first three weeks after its release in China, sales of the iPhone 16 increased by 20% compared to the iPhone 15, Bloomberg and Reuters reported, citing data from research firm Counterpoint.
The sales increase comes as Apple faces intense competition from Chinese phone makers like Huawei, whose latest flagship phone is identical to the iPhone 16. It was released in China on the same day.
According to Counterpoint, the flagship iPhone 16 Pro and Pro Max performed best, with combined sales up 44% over the 2023 Pro model.
Market reaction to the news was positive, with Apple shares up 1.9% in early trading.
The company’s market capitalization hit an all-time high earlier this week, driven by the launch of the iPhone 16 and the upcoming release of Apple Intelligence, the company’s suite of AI features for devices.
Receive text alerts for Forbes Breaking News: Start text message alerts to stay informed of the biggest stories shaping the day’s headlines. Send “alert” via text message (201) 335-0739 Or sign up here.
tangent
Last month’s iPhone 16 and Apple Intelligence announcements were initially met with skepticism from the market, leading to a sharp decline in the company’s stock price. Part of the selloff was prompted by reports that pre-orders for the latest iPhone were about 12.7% lower than the iPhone 15, suggesting slowing demand. But the latest supply chain statistics lead to a reversal of that view, with Morgan Stanley analyst Eric Woodring telling Forbes that the latest iPhone demand metrics are “encouraging” and that iPhones shipped last month. He said that sales of 56 million iPhones exceeded expectations by about 10%. .
Main background
According to a report released by Counterpoint earlier this year, Apple’s smartphone sales in China fell by 19.1% in the first quarter of 2024. Sluggish sales in the world’s largest smartphone market have raised concerns that Apple is losing ground to local rivals such as Huawei and Xiaomi. This was a big blow to the company, as China accounts for more than 15% of its sales. Huawei, the main challenger to Apple in the premium segment, launched its $2,800 flagship device on the same day as the iPhone 16. While the latest iPhones have been labeled as iterations of older designs, the Huawei Mate XT launched with three eye-catching features. folding screen.
Read more
Apple stock rises to all-time high, market cap hits $3.6 trillion (Forbes)
iPhone 16 sales jump 20% as demand recovers in China (Bloomberg)
