No AI-Fueled Upgrade Supercycle? Apple iPhone 16 Discounts Offered At Major Chinese Online Retailers 

No AI-Fueled Upgrade Supercycle? Apple iPhone 16 Discounts Offered At Major Chinese Online Retailers 

For Wall Street analysts banking on new AI-powered iPhones to spark an upgrade supercycle this fall, growing evidence already points to underwhelming demand for these smartphones. 

The latest development comes from China, the world’s largest smartphone market, where online retailers have already offered price discounts on the new iPhone 16 series. 

South China Morning Post offered more insight into iPhone discounts at major Chinese online retailers that only suggest lackluster demand: 

PDD Holdings’ Pinduoduo, one of the country’s most popular e-commerce platforms, has started selling the iPhone 16 Plus with 512 gigabytes of storage for 8,999 yuan (US$1,268), a 10 per cent discount from the official price of 9,999 yuan. The 128GB iPhone 16 is being sold at an even steeper 11 per cent discount.

Both Pinduoduo and Alibaba Group Holding’s’ Taobao marketplace have slapped a 4 per cent discount on the 256GB version of the high-end iPhone 16 Pro Max, lowering the price by 400 yuan to 9,599 yuan. Alibaba’s Tmall shopping platform also offers buyers the option to pay for a new Apple handset in 24 instalments without interest charges.

The discounts in China came days after TF International Securities analyst Kuo Ming-chi’s US pre-order analysis report on Sunday, which found less demand for the iPhone 16 Pro and iPhone 16 Pro Max and, inversely, more demand for base models. 

“Some consumers also questioned whether Apple’s promise to roll out the AI function in Chinese-speaking regions will cover the mainland, where generative AI technology is heavily regulated,” SCMP wrote in a separate note, adding, “Globally, Apple’s built-in AI is powered in part by OpenAI’s GPT models, which have not been made available in China.” 

“The absence of AI in China is akin to cutting one of Apple’s arms,” one blogger said on Weibo. One popular comment read, “With the biggest selling point unavailable, shouldn’t you charge us half the price?”

Meanwhile, Huawei’s share of smartphone sales in China continues to expand. Last quarter, the market tracker IDC showed that the Chinese tech giant recorded a 50% market share. Other brands, including Vivo and Xiaomi, also outpaced Apple, which fell to sixth place among handset makers in the country. 

Maybe Wedbush analyst Dan Ives needs to rethink his whole “AI is on the doorstep” and the grand iPhone upgrade supercycle that is supposedly ahead.

Tyler Durden
Tue, 09/17/2024 – 11:25

via ZeroHedge News https://ift.tt/Ode0MJ2 Tyler Durden

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