Apple officially launched iPhone16, and the standard version further increased its memory, with the entire series adopting the A18 processor, a significant upgrade from the previous iPhone15 standard version's use of an older processor. However, the iPhone16 still starts at 5,999 yuan, truly adding quantity without increasing price. Nevertheless, the iPhone16 may still struggle to stem its declining momentum in the Chinese market.

In the first quarter of this year, Apple saw a nearly 7% decline in the Chinese market, and in the second quarter, it fell out of the top five in the Chinese market, highlighting Apple's decline in this market. This decline is attributed to intensified competition from Chinese smartphone manufacturers, especially one that has posed considerable pressure on Apple since relaunching its 5G smartphones at the end of August last year.

This domestic smartphone brand has achieved rapid growth for several consecutive quarters in the domestic market, boosting its share in the global high-end smartphone market to 9%, once again forming a three-way standoff with Apple and Samsung. Notably, its 5G smartphones are primarily sold in the domestic market, underscoring its strength in this region.

Apple's decline in the Chinese market is attributed to a lack of innovation. In recent years, Apple has struggled to make significant advances in innovation, adopting a conservative approach to introducing new technologies. It also differentiates between its low-end and high-end customers, with the standard version of the iPhone often lacking certain features, resulting in reduced purchasing power among low-end users. Consequently, sales of the standard version have gradually declined, while sales of the high-end Pro version have increased but failed to offset the decline in standard version sales, given the near-10,000 yuan price tag of the Pro version.

In contrast, domestic smartphone brands and Qualcomm have made significant strides in recent years, particularly in the area of chip technology, where Qualcomm's recent generations of high-end chips have delivered 30% performance improvements per generation, while Apple's A-series processors have only seen 10% improvements. This has gradually narrowed the performance gap between domestic smartphones and Apple devices.

To compete in the market, domestic smartphone brands lowered their prices below 4,000 yuan last year, winning back the hearts of many consumers and boosting sales of domestic flagship smartphones, contributing to the decline in iPhone sales in the Chinese market.

Faced with poor sales of the iPhone in China, Apple's iPhone 15, released last year, fell below its launch price just one week after its release. By March of this year, it had dropped by 1,500 yuan, and by June, it had fallen by 2,350 yuan. In comparison, last year's iPhone 14 only saw a price drop of around 1,500 yuan during the 618 promotional period. This underscores the significant sales pressure Apple is facing this year.

Faced with market pressure, Apple has made significant changes this year, as evidenced by the adoption of the A18 processor across the entire iPhone 16 series. However, there are still differences between the standard and Pro versions. While the iPhone 16 uses the standard A18 processor, the iPhone 16 Pro employs an enhanced A18 Pro processor. In terms of design, the standard iPhone 16 features a rear camera layout resembling traffic lights, while the iPhone 16 Pro opts for a square module design. Such a pronounced design difference may be unappealing to low-end iPhone users who value aesthetics.

Industry insiders suggest that for these consumers, considering both appearance and performance, the iPhone 15 Pro may be more appealing than the iPhone 16. The iPhone 15 Pro offers similar performance and camera technology as the iPhone 16 Pro, with nearly identical aesthetics, but at a more competitive price point, making it a more cost-effective option.

Apple's approach undoubtedly aims to encourage consumers to opt for the pricier iPhone 16 Pro, thereby generating more revenue and profit for the company. However, this strategy may inadvertently impact overall iPhone 16 sales, making it challenging to achieve the desired sales boost. It is projected that the iPhone 16 Pro will remain the top-selling model.

Apple CEO Tim Cook places great emphasis on profit. Since taking over as CEO, he has employed various strategies to drive profit growth, including introducing more suppliers to foster competition and reduce component costs. However, this approach has contributed to Apple's lack of innovation. In contrast, during Steve Jobs' era, he was willing to provide suppliers with more profits to encourage innovation. Nowadays, Apple tends to resort to price cuts when sales are sluggish, suggesting that price reductions have become the company's primary weapon to address most issues.