iPhone Air, the thinnest iPhone ever made, sold out within minutes of its official launch in China on Friday. The strong demand highlights the enduring popularity of Apple in one of its most important markets, even as competition from local smartphone brands grows.

Record-Breaking Launch Day

Pre-sales for the iPhone Air began at 9 a.m. local time after receiving Chinese regulatory approval. The model supports only e-SIM and was launched in China more than a month after most other countries. Online pre-orders opened at 8 p.m. on Apple’s Chinese website and major e-commerce platforms like JD.com and Tmall. All available units were gone by 8:05 p.m.

Physical Apple Stores in major cities such as Beijing, Shanghai, and Tianjin also saw long lines. Shipping for online orders has already been delayed by one to two weeks. Analysts estimate hundreds of thousands of units may have been sold during the first wave, though Apple has not released official figures.

Tim Cook’s High-Profile Visit

The successful launch followed a strategic visit to China by Apple CEO Tim Cook. During his trip, Cook met Vice-Premier He Lifeng and Commerce Minister Wang Wentao to discuss trade ties, Apple’s growth plans, and cooperation with local partners.

Cook also visited developers, suppliers, and universities, including Tsinghua University School of Economics and Management, where he announced a donation to support environmental leadership programs. His visit drew millions of views on Chinese social media, generating buzz ahead of the launch.

Product Features and Pricing

The iPhone Air is just 5.1 mm thick, making it the slimmest iPhone ever. It comes with the upgraded A18 chip, enhanced camera features, and improved battery life. It is priced at 5,999 yuan (around $845 USD), targeting consumers who prefer premium and lightweight smartphones.

Competitive Market Landscape

Apple currently holds a 15% market share in China, behind Vivo at 18% and Huawei at 16%. The overall smartphone market declined 3% year-on-year in Q3. Yet Apple’s strong launch performance signals loyal demand despite tough competition from Huawei’s foldable phones and Xiaomi’s AI-focused devices.

Strengthening Local Ties

Apple has also expanded investments in Chinese supply chains and announced new R&D centers, including a research lab in Shenzhen. It is working with Beijing Anzhen Hospital to use Apple Watch for heart health monitoring. These steps highlight Apple’s commitment to innovation and long-term growth in China.

The iPhone Air’s rapid sell-out proves Apple’s strong brand appeal in China. Backed by Tim Cook’s well-timed visit and growing local partnerships, Apple has managed to generate massive excitement and reinforce its position in a challenging, competitive market.

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The competition in the smartphone market continues at full speed. However, one brand manages to outperform its competitors in almost every market. You guessed it right, Apple is way ahead of its competitors, especially in the premium segment. Moreover, the company maintains this dominance even in markets such as China where domestic brands are very strong. According to latest reports, Apple reaches highest ever monthly market share in China.

One in every four devices sold in China was an iPhone

Apple reached its highest ever monthly market share (25%) in China in October 2022, while becoming the #1 OEM in the country for the second consecutive month, according to Counterpoint Research’s Monthly Market Pulse Service. While the sales for other key OEMs declined in October, Apple grew 21% MoM. In YoY terms, China’s sales declined 15%, while Apple’s sales declined just 4%.

Apple has been reaching new heights in terms of market share in China during the last two years. It reached a record monthly market share in November and December 2020, and in October, November and December 2021. Notably, 2020 was also the year when US sanctions were imposed on Huawei.

Commenting on the market growth in China, Research Director Ethan Qi said, “China’s market has been sluggish due to multiple factors, including macroeconomic pressures and COVID-19 lockdowns hitting consumer sentiment. Overall sales declined 4% MoM. However, Apple managed to defy the market trend. This also shows the resilient nature of the premium segment.

Looking at the trend for the last two years in China, it is evident that Apple has emerged as a clear winner of Huawei’s share in the premium market. It has almost become an undisputed leader in China’s premium segment. The iPhone 14 series has started off well with the iPhone 14 Pro and Pro Max performing better than the previous generation. The iPhone 13 also continues to do well, as the iPhone 14 offers little differentiation from the iPhone 13.”

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Investment bank Wedbush analyst Daniel Ives believes that iPhone 13 orders are already about 20% ahead of Apple‘s earlier iPhone 12 lineup due to high volumes of pre-orders in China. He says that iPhone 13 demand looks “robust out of the gates,” as China approaches the 5 million or 6 million pre-orders mark. Despite supply chain issues, Apple could witness better results than iPhone 12 launch last year.

The analyst, in conversation with AppleInsider, also highlights that a major chunk of iPhone orders is skewing toward the premium models like the iPhone 13 Pro and iPhone 13 Pro Max, which will help Apple end up averaging higher ASP (average selling price). As a result of this, Apple may continue to maintain its lead with an even bigger margin this time. Ives also believes that luring financing options and aggressive trade-ins could also play a role in swaying iPhone owners who may be considering an upgrade.

Wedbush supply checks hint that iPhone 13 orders appear to be in the 90 million unit range which is higher than the 80 million units that we witnessed for iPhone 12. Apple may further set iPhone unit builds somewhere between 130-150 million if things continue to unfold the way it has so far. The iPhone 13 lineup is on an exponential trajectory and has already registered a 10% build increase YoY right away.

The analyst has a strong belief in his “super-cycle” thesis and that it will do well in 2022. According to this, an estimated 250 million out of 975 million iPhone devices are in line for an upgrade. Ives hasn’t altered his outperform rating for Apple and his 12-month price target of $185 which has been formulated based on a sum-of-the-part valuation on his Apple 2022 estimates.

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• Apple iPhone 13 series pre-orders exceed 5 million units in China on day one – Gizmochina

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