24/7 Wall St. Insights
- The iPhone 16 must do well in China to keep Apple Inc.’s (NASDAQ: AAPL) global revenue momentum growing.
- Early reaction reveals users are not impressed by the lack of AI features.
- Also: Discover the Next Nvidia.
The iPhone 16 has to do well in China to keep Apple Inc.’s (NASDAQ: AAPL) global revenue momentum growing. It is that simple. China is the largest smartphone market in the world by far, with about 950 million smartphones in use, which is about three times the U.S. figure. Early reaction to the new iPhone 16 is weak according to one source. And the iPhone 16 was launched the same day as a local rival released its new flagship product.
According to Reuters, users of local chat product Weibo criticized the iPhone, particularly for its lack of new AI features. Those will come later this month with the release of iOS 18. Reuters posted some Weibo comments. “iPhone 16 Chinese version doesn’t support AI yet” attracted 11.33 million views and over 1,500 comments on Weibo. “What’s the point of buying it if you can’t use AI?” wrote one Weibo user. Another commented, “Without AI as the biggest selling point, it should be half price.”’
Huawei, one of the largest Chinese smartphone companies, released its tri-fold Mat XT yesterday. It can act as a smartphone, a device with a larger screen, or a tablet. In theory, buyers of the new smartphone will not need a tablet as well.
It is worth remembering that Apple stock took a beating earlier this year. One report showed iPhone sales dropped 24% in the first six weeks of 2024, compared to the year before. Strong Huawei sales reportedly were the primary cause.
Apple’s financial results have shown a struggle in China so far this year. For the first nine months of Apple’s fiscal year, Greater China revenue dropped from $57.5 billion in the same period the year before to $52.9 billion.
Prediction: Apple Turns Rotten in October
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