In an interview with Counterpoint Research analyst Ivan Lam, we explored the recent performance of Apple’s latest smartphone, the iPhone 16, in China. In the first three weeks since its launch, sales surged by 20% compared to the same period in 2023, marking a positive turnaround for Apple in a market where it has struggled this year.

According to data provided to Bloomberg, the iPhone 16, which hit the market in September, has outperformed its predecessor. There’s been a notable shift among consumers towards more premium models, with sales of the Pro and Pro Max variants seeing a remarkable growth of 44% compared to last year.

While this is just a preliminary result for the first three weeks, it suggests that Apple’s new product performance in 2024 is better than in previous years. Lam pointed out that the iPhone 15 series faced production challenges at launch, which may have hampered its initial sales. In contrast, the iPhone 16 series appears to be benefiting from improved production capacity, a consistent pricing strategy, and a wave of upgrades from existing iPhone users, leading to significant growth in the Chinese market.

This recent success has contributed to Apple’s stock price reaching an all-time high this week, driven by market optimism surrounding the launch of the new AI-enabled iPhone. However, analysts caution that Apple’s ability to maintain this momentum could be jeopardized. With Beijing’s ban on foreign-developed AI models, if Apple fails to find local partners to provide AI functionality, the iPhone 16’s performance could falter.

Despite its strong start, the iPhone 16 will face intense competition from local rivals. Vivo has just launched its new flagship, the X200 Pro, while Huawei is expected to unveil the next generation of its Mate series in November. Additionally, both Xiaomi and Oppo are set to refresh their product lines by the end of the year. As Tim Cook, Apple’s CEO, has noted, China remains the world’s largest smartphone market and one of its most competitive landscapes.