$Apple (AAPL.US)$ After the latest iPhone was launched, sales in the China market increased by 20% in the first three weeks compared to the 2023 model. For the iPhone, which has struggled to gain attention in the world's largest smart phone market, China, this is a positive sign.

According to Counterpoint Research data, the performance of the iPhone 16 unveiled in September has been better in the Chinese market than its predecessor, the iPhone 15. Consumers still prefer higher-priced premium models, with sales of the high-end models Pro and Pro Max increasing by 44% year-on-year compared to last year.

Although it is only three weeks of sales, the data indicates that Apple's new products released this year are performing better than last year. Counterpoint analyst Ivan Lam mentioned that production issues early on hindered the progress of the iPhone 15 series, which may have limited initial sales. Apple's flagship devices also face a serious challenge from Huawei's Mate 60 series, which has won the favor of Chinese consumers with its domestically produced chips. According to Lam, the sales of the Mate 60 series are still strong.

Lam said: "Considering smooth production, consistent pricing strategies, and the wave of first-time upgrades from existing iPhone users, the iPhone 16 series has experienced significant growth in the domestic Chinese market. The product lineup has also seen significant improvements."

This week, Apple's stock price hit a record high, thanks to the optimistic outlook for the iPhone driven by artificial intelligence. Analysts have warned that due to the lack of local partners to support artificial intelligence features, the performance of the iPhone 16 in China may be subpar.

Although off to a good start, the iPhone 16 will still face many local competitors this year. Vivo has just announced its new flagship product X200 Pro, Huawei is expected to launch its next generation Mate series in November, and several other manufacturers including Oppo will update their product lines before the end of the year. China remains the world's largest smart phone market, and according to Apple CEO Cook's estimate, China is also the most competitive market.

For Apple, the iPhone remains the most important product to date, as it directly contributes to about half of the revenue and attracts consumers to purchase accessories like Apple Watch or subscription services like Apple Music. However, the smart phone market has been stagnant for years, and the performance of this latest generation of smart phone throughout the entire sales process is still to be observed.