Apple iPhone 17 Launch: China Concerns & AI Strategy in Focus

The iPhone 17 officially launched worldwide this Friday, sparking queues that stretched from Beijing to Singapore. While the initial consumer enthusiasm is palpable, Apple faces increased pressure to demonstrate sustained innovation, particularly in artificial intelligence, amidst intensifying global competition.

In China, a crucial market for Apple, eager customers waited for hours, some even overnight, for the opportunity to purchase the new iPhone.

Leading the queue at the Apple flagship store in Sanlitun, Beijing, a customer named Liu, who preferred not to disclose his full name, revealed to CNBC that he had been waiting since 11 p.m. on Thursday to secure his iPhone 17 Pro Max.

Liu expressed particular interest in the refreshed color options and the enhanced exterior design, which Apple claims facilitates improved heat dissipation. Analyst indicate this design change is crucial for maintaining performance in demanding applications and extended usage scenarios common among Chinese gamers and video content creators.

The launch showcases the iPhone 17 Pro, iPhone 17 Pro Max, iPhone Air, and the latest iterations of the Apple Watch and AirPods.

While preorders commenced in the U.S. on September 12th, this global rollout is especially vital as Apple navigates increasingly competitive landscapes in overseas markets and seeks to maintain its premium brand image.

Notably, Liu shared his recent shift from Huawei to Apple, citing the iPhone’s superior user experience for daily life and entertainment purposes. This “switching” trend, if it continues, significantly benefits Apple in regaining market share

Another customer, identified only as Yang, previously a Xiaomi user, expressed his preference for the iPhone’s operating system which he sees as more efficient and secure. Yang also anticipates a wave of first-time iPhone buyers in China due to significant feature enhancements.

Both Liu and Yang specifically mentioned the appeal of increased internal storage options as a major draw for potential customers upgrading or switching to the iPhone 17.

Increased iPhone sales in China is a welcome signal to the Cupertino-based tech giant, which has seen erosion of market share in recent years to domestic players like Huawei and Xiaomi. The geopolitical impacts on global supply chains, and consumer sentiment toward US-based tech companies in China, has prompted this change in market dynamics.

After dominating the Chinese smartphone market for years, Apple now occupies approximately 10% of the market share, trailing competitors such as Oppo, Huawei, and Xiaomi, according to data. A recent analysis by Canalys identifies 5G technology leadership and aggressive pricing strategies as core elements of these domestic brands’ success. This is a great concern for apple and must be addressed in the coming years.

Early indicators for the iPhone 17 series in China are indeed promising. E-commerce giant JD.com reported that initial preorders for the iPhone 17 series surpassed the first-day preorder volume of last year’s iPhone 16 series within the first minute of availability.

Within the smaller, but highly affluent, market of Singapore, the iPhone 17 also saw an enthusiastic reception, with considerable lines forming outside Apple stores across the city.

Iman Isa and Daniel Muhamed Nuv, both young professionals residing in Singapore, queued for several hours prior to the opening of Apple’s store in Marina Bay to purchase iPhone 17 Pros, with both remarking that these were their first new smartphones in several years.

Pointing towards the modern design, enhanced battery life, and enhanced camera capabilities, both Isa and Nuv noted that the new iPhones represented an attractive upgrade that would solidify their loyalty to the Apple ecosystem

Even longer lines were observed at Apple’s outlet on Orchard Road, with separate queues for pre-order customers.

According to Le Xuan Chiew, research manager, based on the present pre-order data, global expectations for the iphone 17 series appear to be largely positive. This positive sentiment will need to be maintained with continued innovation and marketing strategies.

Chiew further stated that the initial pricing of the iPhone 17 series, has created great interest in consumers and exceeded most expectation.

Customer also noted a high-demand for Apple’s new AirPods Pro 3, based on its most notable, live translation feature.

The success of this latest iPhone launch could bring some measure of assurance to investors following previous lackluster rollouts of its artificial intelligence functions.

Ben Wood, chief analyst at CCS Insight, speaking noted that Apple needed to focus on refining its artificial intelligence strategy.

“There is no question that Apple needs to deliver on AI,” he said, suggesting that the company that is “dropped the ball”,” by launching functions that were not as robust as expected last year Wood further noted that Apple will need to catch up in the field of A.I.

– CNBC