Apple Stuck in an AI Quandary

Apple is facing intensified competition from domestic smartphone makers in China, as it has been slow to launch AI features in the market.

According to the Financial Times, major Chinese smartphone brands have successively introduced migration apps to attract iPhone users to switch to Android, further escalating the battle in the world’s largest smartphone market.

Since the beginning of this year, China’s top five domestic manufacturers have all launched data‑migration tools to help users more easily transfer from iOS to Android, or enable dual‑device collaboration.

Omdia analyst Zhong Xiaolei noted: “Chinese smartphone makers are moving faster and more openly in AI development. While it may take time for these strategies to translate into actual users, they will undoubtedly put sustained pressure on Apple’s business in China. The Chinese smartphone market is fragmented and highly competitive, with no single brand holding more than 20% share. Counterpoint data shows that last year vivo overtook Apple to become the market leader. In the third quarter of this year, vivo led with an 18.5% share, while Apple, Honor, OPPO, Xiaomi, and Huawei each held between 13.6% and 16.4%.”

Some manufacturers have already taken concrete steps in system interconnectivity. For example, OPPO’s new system released in October allows users to directly answer iPhone calls, reply to messages, and view notifications on OPPO phones.

By contrast, although Apple offers its “Move to iOS” app to attract Android users, its sales in China have shown weakness: in the quarter ending September, Apple’s revenue in China fell 4% year‑on‑year. However, CEO Tim Cook stated during the October earnings call that he expects sales to “return to growth” this quarter.

Counterpoint estimates that in the month following the September launch of the iPhone 17, Apple’s sales in China rose 22% year‑on‑year, suggesting that consumer concerns about the lack of AI features may be lower than domestic rivals anticipated. Analysts also pointed out that these new functions from Chinese brands have not yet posed a significant challenge to Apple’s dominance in high‑end markets outside China.