Apple’s China iPhone Sales Dip Ahead of iPhone 17 Launch

Apple Inc. saw its iPhone sales in China fall 6% in the weeks leading up to the launch of the iPhone 17, a sharper decline than typically observed ahead of a new flagship release. The slowdown reflects broader market trends, as domestic smartphone makers Xiaomi Corp., Vivo, and Honor Device Co. also reported lower sales during the first eight weeks of the third quarter, according to Counterpoint Research. Overall, China’s smartphone market shrank by 2% in July and August, despite government subsidies aimed at boosting consumption.

China remains Apple’s most important market outside the United States. CEO Tim Cook noted that the company reversed a two-year sales decline during the June quarter, partly due to the subsidies. He highlighted that Apple’s customer base in Greater China hit record levels during this period, which could drive adoption of other Apple products such as Macs, iPads, and Apple Watches. “The majority of customers buying in mainland China were new to our other products,” Cook said during the company’s recent earnings call.

Despite these gains, Apple still trails competitors in China. Counterpoint data shows Apple held only 12% of the market over the summer, ranking sixth. Xiaomi, Oppo, and Huawei each captured 16%, while market leader Vivo led with 19%. The iPhone 17, launching globally this Friday, is considered one of Apple’s most significant upgrades in years, featuring a refreshed design and an enhanced camera system.

Intensified Competition Ahead

Apple’s upcoming launch has already influenced rivals’ strategies. Xiaomi, for instance, has moved up the release of its next flagship device, with co-founder and CEO Lei Jun emphasizing that his company’s products should be compared directly with Apple’s latest innovations. Analysts note that, so far, features related to artificial intelligence have not significantly swayed consumer purchases. Practical considerations such as battery life, pricing, and overall value remain key drivers in China’s highly competitive smartphone market.

Counterpoint Research predicts a slight decline in overall smartphone sales in China for the third quarter and expects the market to remain largely stable through the year. Apple has so far avoided negative fallout from its delayed rollout of the Apple Intelligence suite in China, as consumers continue to prioritize functionality and reliability over AI-driven features.

Summary:

Apple’s iPhone sales in China fell 6% ahead of the iPhone 17 launch, reflecting broader market softness. While record numbers of new customers are boosting other Apple products, the company remains behind local competitors in market share. The new iPhone 17 aims to reinvigorate Apple’s presence, but practical consumer considerations continue to dominate buying decisions in the world’s largest smartphone market.

Frequently Asked Questions (FAQs)

1. Why did Apple’s iPhone sales in China decline ahead of the iPhone 17 launch?

iPhone sales fell 6% in the weeks leading up to the iPhone 17 launch, reflecting a broader slowdown in China’s smartphone market, which also affected Xiaomi, Vivo, and Honor.

2. How does China rank as a market for Apple?

China is Apple’s most important market outside the United States and represents a significant portion of the company’s global revenue.

3. What impact did government subsidies have on Apple’s sales in China?

Government subsidies helped reverse a two-year decline in Apple’s sales during the June quarter and encouraged new customers to try Apple products.

4. What is Apple’s current market share in China?

According to Counterpoint Research, Apple held 12% of the Chinese smartphone market during the summer, ranking sixth behind Vivo (19%) and Xiaomi, Oppo, and Huawei (each 16%).

5. What makes the iPhone 17 a significant upgrade?

The iPhone 17 features a refreshed design and an enhanced camera system, making it one of Apple’s most important product upgrades in recent years.

6. How are Apple’s competitors responding to the iPhone 17 launch?

Xiaomi has moved up the launch of its next flagship device, aiming to directly compete with Apple’s new model. Other competitors are also focusing on practical features to maintain their market share.

7. Are AI features driving smartphone purchases in China?

So far, artificial intelligence enhancements have not been a major factor in driving sales. Consumers continue to prioritize battery life, price, and overall value.

8. What is the outlook for China’s smartphone market this year?

Counterpoint Research expects a slight decline in smartphone sales in China for the third quarter, with the market remaining largely stable over the full year.

9. Will the iPhone 17 help Apple regain market leadership in China?

The iPhone 17 is expected to strengthen Apple’s presence, but it will take sustained sales growth and competitive strategies to regain a leading position in China’s highly competitive smartphone market.