Apple’s iPhone business in China just took a punch to the gut. Sales dropped 6% year-over-year in the two months leading up to the global launch of the iPhone 17, according to data from Counterpoint Research.
That dip hit harder than what the company usually sees before a new model drops. The pullback happened in July and August, weeks before Apple’s new lineup is set to go live this Friday, September 19.
And it wasn’t just Apple. Chinese brands like Xiaomi, Vivo, and Honor also had slower numbers, which dragged the entire market down 2% in the same period, despite government-backed incentives meant to push more people to buy.
China matters to Apple more than anywhere outside the U.S., and the latest numbers show it’s becoming a tougher place to win. CEO Tim Cook told investors during Apple’s latest earnings call that the company saw a short-term sales recovery in China during the June quarter, helped by subsidies.
But even with that bounce, Apple still landed in sixth place over the summer, owning just 12% of the market. Chinese rivals were ahead: Xiaomi, Oppo, and Huawei each grabbed 16%, while Vivo led with 19%.
Xiaomi fast-tracks its release after Apple’s announcement
To stay competitive, Xiaomi pushed up its next flagship launch to this month. Lei Jun, the company’s co-founder and CEO, said he wants Xiaomi phones to be judged next to Apple’s top-tier devices.
The iPhone 17 lineup is Apple’s biggest hardware shake-up in years, with four different models rolling out: the regular iPhone 17, the thinner Air, the higher-end Pro, and the super-sized Pro Max.
Every single one of them runs on Apple’s updated in-house chips, has better cameras, and comes wrapped in tougher glass. Preorders started September 12.
The company also tweaked its pricing. Most models kept last year’s pricing, but the iPhone 17 Pro now starts at $1,099, which is $100 higher than before. That version now ships with 256GB of storage, matching the price of last year’s 256GB iPhone 16 Pro. The global release date for all four models is September 19.
On that same day, Bloomberg reporters got hands-on time with the new devices during Apple’s media event, which also showed off the newest AirPods Pro and updated Apple Watch models.
Those first impressions focused on the hardware upgrades, especially the new body build and camera system, but didn’t mention much about software features.
Apple’s AI suite missing in China but buyers don’t care yet
One major gap still looms large. Apple hasn’t rolled out its Apple Intelligence features in China yet. But so far, that hasn’t seemed to affect how people are buying phones. Analysts from Counterpoint say Chinese consumers are still looking at basics like battery life, storage, and value for money.
None of the major brands are seeing AI features drive sales. That means Apple’s lack of AI in China isn’t hurting … yet. Even so, the broader Chinese smartphone market is still weak.
Counterpoint expects sales across the country to drop slightly for the full third quarter. There’s no major change happening this year, and no signs that a single product, iPhone or otherwise, is going to turn that around.
Cook told investors that Apple’s customer base in Greater China hit a record in the last quarter. He said, “If you look at the other products, Mac, iPad, and Watch, the majority of customers that are buying in China mainland were new to the product.” So Apple’s still pulling in first-time buyers for its other devices, even if the iPhone is losing ground.
The problem is, Chinese phone makers aren’t sitting still. They’re speeding up launches, matching specs, cutting prices, and competing more aggressively than ever. Apple is still chasing the lead in a market where value sells more than hype, and features matter more than branding.
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Source: https://www.cryptopolitan.com/iphone-sales-china-dropped-6-year-over-year/
