Apple’s newest iPhone 16 smartphones saw a stronger launch in China compared to 2023 models, a positive sign for the tech giant after months of concerns about ceding ground to local rivals in the world’s biggest smartphone market.
The iPhone 16 is off to a strong start in China, sales data showed.
Sales of the iPhone 16 were 20% higher in the first three weeks since their launch in China, compared to the iPhone 15, Bloomberg and Reuters reported, citing data from research firm Counterpoint.
The sales bump comes as Apple faces stiff competition from Chinese phone makers like Huawei—whose latest flagship phone launched in China on the same day as the iPhone 16.
According to Counterpoint, the flagship iPhone 16 Pro and Pro Max models were the strongest performers, with their combined sales being 44% higher than the 2023 Pro models.
Apple shares rose 1.9% in early trading as markets reacted positively to the news.
The company’s market cap hit a record 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 its devices.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
Last month’s announcement of the iPhone 16 and Apple Intelligence was initially met with skepticism from the market, leading to a sharp slump in the company’s share price. The selloff was partly triggered by reports of preorders for the latest iPhones being around 12.7% lower than the iPhone 15—signaling softer demand. However, the latest supply chain numbers have led to a reversal in that sentiment, with Morgan Stanley analyst Erik Woodring telling Forbes that demand metrics for the latest iPhones were “encouraging” and the 56 million iPhones shipped last month was around 10% higher than projections.
A report published by Counterpoint earlier this year showed Apple’s smartphone sales in China fell 19.1% in the first quarter of 2024. The poor sales numbers in the world’s biggest smartphone market raised concerns that Apple was losing ground to local rivals like Huawei and Xiaomi. This was seen as a major blow for the company as China accounts for more than 15% of its revenues. Huawei, a key 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 were labeled as iterative of older designs, the Huawei Mate XT launched with an eye-catching tri-folding screen.
Apple Stock Rises To All-Time High—And Record $3.6 Trillion Market Cap (Forbes)
iPhone 16 Sales Soar 20% in China Debut as Demand Returns (Bloomberg)