Key facts
- Apple's iPhone 18 Pro series has led to the company reclaiming the top spot in China's smartphone market.
- Sales of the iPhone 18 Pro models in their first three days were 12% higher than the iPhone 17 Pro's entire first week last year.
- China's Cyberspace Administration of China (CAC) approved seven on-device AI service applications, including for Apple.
- Localized Apple Intelligence is expected to launch in China as early as September 2026, potentially alongside iOS 27 and the iPhone 18 series.
- Alibaba's Qwen and Baidu's visual AI capabilities are expected to power localized Apple Intelligence in China.
- The Chinese smartphone market has declined 8.6% year over year in the first 30 weeks of 2026.
Apple has regained the top position in China's smartphone market following the release of its new iPhone 18 Pro series, a development that could provide a much-needed boost to a struggling handset market. The market has been hampered by weak consumer demand and rising component costs.
According to a report from Counterpoint Research published on Wednesday, sales of the new iPhone 18 Pro models during their initial three days on the market were 12% higher than the entire first week of sales for the previous iPhone 17 Pro lineup.
Smart Analytics Global (SAG) anticipates that localized Apple Intelligence features will be introduced in China as early as September 2026, likely coinciding with the release of iOS 27 and the iPhone 18 series. This localized version is expected to leverage Alibaba's Qwen large language model and Baidu's visual AI capabilities to comply with regulatory requirements and offer tailored user experiences. SAG believes these AI features will serve as a significant upgrade catalyst for Chinese iPhone users, driving replacement demand and boosting sales for both the iPhone 17 Pro and the upcoming iPhone 18 Pro series.
The Cyberspace Administration of China (CAC) has approved seven on-device AI service applications this week, marking a significant step towards the commercialization of AI agent smartphones in the country. These approvals pave the way for localized AI experiences from leading smartphone vendors, including Apple, Huawei, Xiaomi, OPPO, vivo, Samsung, and ZTE (Nubia).
China's overall smartphone market has experienced a year-over-year decline of 8.6% in the first 30 weeks of 2026. Data from Counterpoint indicates a surge in sales during the 618 shopping festival in May and June, but a seasonal slowdown is expected to persist until the new iPhone models launch in September. Huawei has maintained strong market share, with weekly shares remaining above 20% since the second quarter of 2026, while other Android manufacturers face price increases due to memory supply constraints.