TLDR
- iPhone 17 launched globally on Friday with Pro, Pro Max, and Air models plus new Apple Watch and AirPods
- Apple faces growing competition in China where it holds only 10% market share, trailing local brands like Huawei and Xiaomi
- Early demand appears positive with iPhone 17 base model outperforming expectations due to unchanged pricing despite storage upgrades
- Apple CEO Tim Cook confirmed price increases on Pro models are not related to tariffs, despite $100 increase on iPhone 17 Pro
- Company continues addressing concerns about slow AI rollout while maintaining supply chain shifts away from China to avoid tariffs
The iPhone 17 hit store shelves worldwide on Friday, drawing long lines from Beijing to London as Apple launched its latest smartphone lineup. The new products include the iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air, along with updated Apple Watch and AirPods models.
Customers in major cities waited hours and even overnight to purchase the new devices. In Beijing, Liu queued since 11 p.m. Thursday at the Apple flagship store in Sanlitun to get the iPhone 17 Pro Max. He praised the phone’s new color and exterior design, which Apple says improves heat dissipation.
The early customer response suggests Apple may be gaining ground with Chinese consumers. Both Liu and Yang, customers interviewed in Beijing, had switched to iPhone from Chinese brands like Huawei and Xiaomi. They expect many Chinese residents to buy their first iPhone this year due to new features including larger internal storage.
JD.com, one of China’s largest e-commerce platforms, reported positive early sales data. The first minute of iPhone 17 preorders surpassed the entire first day of iPhone 16 preorders from last year. iPhone 17 trade-in sales were four times higher than the same period last year.
Market Share Challenges in China
These early signs offer hope for Apple in China, where the company has lost ground to local competitors. After years of market leadership, Apple now holds only 10% of the Chinese smartphone market. Local players like Oppo, Huawei, and Xiaomi have gained market share at Apple’s expense.
The competition pressure extends beyond China. In Singapore, customers queued for hours at Apple outlets, with many interested in the new AirPods Pro 3 for its live translation feature. London saw longer lines than last year’s iPhone 16 launch, with customers showing more interest in premium Pro and Pro Max models.
Le Xuan Chiew, a research manager at Omdia, said initial global demand for the iPhone 17 series appears largely positive. The iPhone 17 base model has outperformed expectations because Apple kept pricing unchanged from the predecessor despite memory storage upgrades.
Pricing and Tariff Concerns
Apple CEO Tim Cook addressed pricing concerns during the launch, telling CNBC that price increases on some models are not related to tariffs. The iPhone 17 Pro saw a $100 price increase while entry-level models maintained their prices. Apple also introduced the Air model to replace the Plus at a higher price point.
Cook’s comments mark one of the first times he has directly addressed tariffs in relation to iPhone pricing. Many analysts had expected price hikes as Apple navigates President Trump’s tariff policies.
To avoid tariffs, Apple has shifted its supply chain to import iPhones from countries like India and Vietnam rather than China. The company has also committed at least $600 billion toward U.S. manufacturing and supplier support.
During the June quarter, Apple took an $800 million hit from tariff-related costs. Cook has made public appearances with Trump as the company works to maintain favorable trade relationships.
The launch comes as Apple faces questions about its artificial intelligence rollout. Cook told CNBC that “we have AI everywhere in the phone, we just don’t call it” AI, addressing concerns about the company’s slower AI feature deployment compared to competitors.
