Apple's iPhone 16 Faces Criticism in China: Lack of AI Features Causes Displeasure

Apple unveiled its long-awaited, AI-enhanced iPhone 16 on Monday, hoping that the new features will encourage consumers to upgrade. This comes against the backdrop of a slowdown in smartphone sales, which account for more than half of Apple’s total revenue. However, Apple has not yet announced an AI partner in China to provide the necessary artificial intelligence for the 16 models. Additionally, Apple Intelligence, the company's AI software, will not be available in Chinese until next year. The launch of the iPhone 16 dominated discussions on Chinese social media on Tuesday, just ahead of Huawei's presentation of a tri-fold smartphone later in the day. On Weibo, China's counterpart to X (formerly Twitter), three of the top 10 trending topics were dedicated to the iPhone 16 launch, with AI features being a major topic of discussion. The hashtag "Chinese version of the iPhone 16 does not yet support AI" garnered 11.33 million views and over 1,500 comments on Weibo. One user asked, "What's the point of buying if you can't use the AI?" Another remarked, "Without AI as a key selling point, it should be offered at half the price." The iPhone 16 and 16 Plus will be available at the same prices as their predecessors. In China, Apple aggressively cut prices earlier this year due to government restrictions on the use of foreign-brand phones and increasing competition in the domestic market affecting smartphone sales. Some Weibo users compared Apple's launch with Huawei's new smartphone, which is also about to be unveiled. One user wrote, "Whether the iPhone 16 has AI or not, I don't care because I'll buy Huawei's triple-foldable phone," highlighting the growing popularity of Huawei's latest models in China. Huawei had overtaken Apple as the country's third-largest smartphone manufacturer in the second quarter. Analysts, however, predict that the absence of AI features in the iPhone 16 will not have a significant short-term impact on sales. "Chinese consumers are not yet driven by AI features to upgrade ... In the long run, however, it will negatively affect Apple if domestic brands use AI as a key differentiator for their flagship products," said Toby Zhu, an analyst at technology market research firm Canalys. Zhu believes that Apple needs to localize its offerings and quickly build an ecosystem of AI applications and services in China to remain competitive. "Apple's strong customer loyalty remains a draw for Chinese consumers," said Will Wong, an analyst at IDC. "The replacement needs of users of the iPhone 11, 12, or 13 series could continue to support Apple’s sales despite the absence of AI features." Wong added, "It’s still too early to say who will win." Pre-orders for the new iPhone begin on Friday in China via online retailers such as JD.com, with deliveries starting September 20.