Apple iPhone 17 goes on sale as questions remain over China market, AI strategy

The iPhone 17 hit store shelves worldwide on Friday, drawing long lines from Beijing to Singapore.

But beyond the launch buzz, Apple is under pressure to prove itself, grappling with questions around its artificial intelligence plans as well as increasing competition. 

One of those markets is China, where Apple customers waited for hours and even overnight to get their hands on the new iPhone 

First in line at the Apple flagship Store in Sanlitun, Beijing, this morning, was Liu — he did not wish to be identified by his full name — who told CNBC that he had been queuing since 11 p.m. on Thursday for his chance to pick up the iPhone 17 Pro Max.

He said he was excited about the smartphone’s new color and exterior design, which Apple says has improved the phone’s heat dissipation. 

Products on displays for the first time include the iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air, as well as new Apple Watch and AirPods models.

While they were available for preorders in the U.S. from Sept. 12, the global launch holds particular significance as Apple takes on growing competition in overseas markets. 

Notably, Liu also said he has changed to Apple from Huawei in recent years, seeing the iPhone as better for daily life and entertainment. 

Another person, who wished to be identified only by his surname, Yang — an erstwhile Xiaomi user — said he had been waiting to get his hands on the latest iPhone, preferring them for their operating system. 

Both Liu and Yang expect many Chinese residents to buy their first iPhone this year due to new features, such as larger internal storage. 

If that trend were to pan out, it would be welcome news for iPhone, which has lost market share in China to players such as Huawei and Xiaomi. 

After years of leadership in the region, Apple now only holds 10% of the Chinese smartphone market, trailing local players like Oppo, Huawei, Xiaomi and others, according to data from Omdia.

So far, the signs are positive for the iPhone 17 series in China. Last Friday, JD.com — one of China’s largest ecommerce platforms — saw the first minute of iPhone 17 series preorders surpass the first-day preorder volume of last year’s iPhone 16 series, the company reported. 

In the much smaller but affluent market of Singapore, the redesigned iPhone 17s were also met with fervor, with long lines forming outside Apple outlets across the city. 

Iman Isa and Daniel Muhamed Nuv, two young professionals in Singapore, had both queued up hours ahead of open at Apple’s outlet in Singapore’s iconic Marina Bay mall to buy iPhone 17 Pros, which they said were their first new phones in many years. 

Citing fresh designs, longer battery life and an improved camera, they said that the new phones offer enough to keep them loyal to the Apple ecosystem.

Lines were even longer at an outlet in Singapore’s Orchard, the city-state’s primary shopping center, with a separate queue for people who had preordered the iPhones. 

Based on preorder times and consumer feedback, the initial global demand for the iPhone 17 series appears largely positive, said Le Xuan Chiew, a research manager at Omdia.

The iPhone 17 base model in particular has outperformed expectations, as the pricing at launch has remained unchanged from its predecessor despite upgrades in memory storage, Le said. 

In Singapore, customers arriving at Apple outlets had also been looking to nab some of the company’s new AirPods Pro 3, citing the product’s live translation feature as a major selling point.

A successful iPhone 17 launch could help reassure Apple investors after a far from exciting rollout of its artificial intelligence features which began late last year.

Speaking to CNBC last week, Ben Wood, chief analyst at CCS Insight, lauded Apple’s latest product launches, but said that the company needed to deliver on artificial intelligence. 

“There is no question that Apple needs to deliver on AI,” he said, noting that the company had “dropped the ball” last year by making big promises that failed to materialize. Such plans have now been pushed to next year. 

“Apple has to catch up [in AI], but right now, I think they’ve got enough runway to be able to cope in the intervening period.”

– CNBC’s Eunice Yoon contributed to this report