Advertisement

iPhone 16’s lack of Apple Intelligence in China leaves market open to rivals like Huawei

Apple has not revealed plans to launch AI services in China, where it is facing increasing competitive pressure from Huawei and other local rivals

Reading Time:2 minutes
Why you can trust SCMP
6
People look at the iPhone 15 Pro after Apple’s smartphone went on sale in Shanghai on September 22, 2023. Photo: Reuters
Ben Jiangin Beijing
Apple’s iPhone 16 launch is clouded in China by competitive pressure from local players and uncertainty over when the country might get access to its Apple Intelligence feature, according to analysts.
Advertisement
Hours after the US consumer electronics giant is expected to launch its iPhone 16 line-up on September 9, California time, Huawei Technologies will have its own event, where it is expected to unveil its ‘tri-fold’ smartphone with two hinges. Richard Yu Chengdong, the chairman of Huawei’s global business group, said the company will launch “the most leading, innovative, and disruptive” product at the event scheduled for September 10, China time.
Apple has already been facing mounting pressure in China, one of the company’s most important markets, and recently fell out of the top five vendors by shipments. Its challenges could be exacerbated with the iPhone 16 given uncertainty around its ability to offer Apple Intelligence in the country. The built-in artificial intelligence (AI) is powered in part by OpenAI’s GPT large language models (LLMs), which cannot be made commercially available in China.

“iPhone will continue to see erosion [of its market share] in the premium segment by Huawei and other Chinese brands,” said Ivan Lam, senior analyst at consultancy Counterpoint Research.

OpenAI CEO Sam Altman in the audience during the 2024 Apple Worldwide Developers Conference in Cupertino, California, on June 10, 2024. Photo: EPA-EFE
OpenAI CEO Sam Altman in the audience during the 2024 Apple Worldwide Developers Conference in Cupertino, California, on June 10, 2024. Photo: EPA-EFE

Apple saw its sales dip 5.7 per cent in the Chinese market in the second quarter despite an overall 6 per cent sales increase over the period owing to recovering consumer demand, according to Counterpoint data.

Advertisement
Advertisement