Apple failed to mention one pretty big iPhone concern at its Glowtime event — and that's a problem
Apple
- Apple's iPhone 16 launch event left questions about its strategy in Greater China, a major market.
- Analysts predict a "golden upgrade cycle" but Apple's had iPhone sales struggles in China this year.
- Its partnership with OpenAI won't roll out in China, but it's in talks with a local AI company.
Apple made some big announcements during its highly anticipated launch event on Monday, but it left questions that many might have about its plans for China unanswered.
Analysts have predicted a "golden upgrade cycle" for Apple following the official launch of the iPhone 16, complete with AI capabilities. Still, execs didn't mention the massive market — where its iPhone sales have struggled in 2024 — at the Glowtime event.
That dip in sales has got investors worried that Apple's dominance in the Chinese smartphone market is waning as local companies like Huawei and Xiaomi compete for the top spot.
Apple fell out of the top five smartphone shippers in China during its second quarter, The Wall Street Journal reported.
And despite praise from those who believe Apple's first AI-powered iPhone could help turn the tide in Greater China, the tech giant's ChatGPT partnership with OpenAI won't be rolled out in the region. Meanwhile, the US will have access to Apple Intelligence in October, but the company said Chinese-language consumers shouldn't expect it to be available until 2025.
The new iPhone models will be available for preorder on September 20. The iPhone 16 Pro starts at $999, and the Pro Max model starts at $1199.
But will Chinese customers be lining up to get a smartphone that's missing part of its biggest selling point?
Apple has previously said it's looking for a local partner to work on the Apple Intelligence chatbot features for China, but it's unclear exactly when those features would roll out. It's reportedly in talks with Chinese AI company Baidu to bring the tech to iPhones.
The reported partnership with Baidu "will fill in a missing piece of the AI puzzle in the key China market," Wedbush Securities analysts wrote in a Monday note.
Apple's Chinese smartphone competitors aren't letting up in their pursuit of dethroning the giant. Hours after Apple made its big iPhone announcement, Huawei launched its own phone, the Mate XT, which will be available in China on the same day as the iPhone 16.
Apple may be experiencing a slip in smartphone sales in China, but Huawei saw its sales leap 69.7% in the first three months of 2024.
The Mate XT, which Huawei claims is the world's first tri-fold smartphone, reportedly raked in over 2 million preorders in the hours following its launch.
Still, the iPhone 16 is being hailed as a potential game changer in tech.
We'll have to see how the numbers look on September 20 when it goes head-to-head with one of its Chinese rivals.