Over the past few weeks, a rare phenomenon has swept China’s smartphone market: six of the country’s top brands, one after another, have launched their flagship models for the year. The sequence began with Vivo’s X200 series on October 14, followed by Oppo’s Find X8 on October 24. Xiaomi unveiled its 15 series on October 29, while Honor’s Magic 7 and iQOO 13 joined the fray on October 30. OnePlus capped the wave with its OnePlus 13 release on October 31.
Typically, Chinese brands update their flagship models between November and January, spacing releases to maximize media attention and engagement. This year, though, they have sped up by one to two months, adopting a launch-and-sell model that skips the usual presale wait. There’s a reason for this—they are aiming to capitalize on China’s biggest shopping event, Singles’ Day, while mounting a unified push against a common rival: Apple’s iPhone 16.
According to Li Jie, president of OnePlus China, two major factors drove the early flagship launches this year:
- First, Qualcomm released its new Snapdragon 8 Gen 4 processor, built with 3-nanometer technology, earlier than expected, with substantial upgrades. Chinese brands jumped at the opportunity, unwilling to delay their response in a competitive landscape.”
- Second, consumer buying habits have shifted. Peak shopping seasons, which were once in February and August, have now moved to June and November, aligning with major offline and online shopping events. Brands want to be present with new models when consumers are ready to spend.
Apple has countered with a rare price adjustment. Within the first month of the iPhone 16 launch, the company introduced discounts of up to RMB 1,600 (USD 224) through trade-ins. As competition heated up, Apple CEO Tim Cook made his second trip to China in October this year, meeting with retail staff in a bid to rally confidence among Chinese consumers.
Together, these early launches and aggressive flagship rollouts signal that Chinese brands are now directly challenging Apple’s dominance in their home market.
Facing Apple head-on
In past years, Chinese brands positioned their flagship offerings as complementary alternatives to Apple’s products. But this year, their ambition is impossible to ignore. The new models are designed to compete head-to-head with Apple, with an emphasis on both aesthetics and ecosystem integration.
For years, Chinese brands leaned on larger screens and heavier builds to distinguish themselves from Apple’s more compact designs. This time, Vivo’s X200 Pro Mini debuted as a smaller, sleeker flagship model. At the launch, Vivo even playfully described it as “Apple-like,” while displaying a bright orange graphic on screen—a cheeky nod to Apple’s logo.
Other brands have also moved toward smaller, flat displays on their flagships, veering away from oversized, curved screens while collectively reducing weight and thickness for a sleeker feel.
Apple’s closed ecosystem has long been a barrier, but this year, Chinese brands are challenging that with interoperability. Oppo’s new Find X8 series includes a “tap-and-share” feature similar to AirDrop, enabling file transfers between Oppo and Apple devices. Additionally, Oppo supports Apple’s “live photo” format, making file exchange across Android and Apple systems seamless. According to Pete Lau, Oppo’s chief product officer, the goal is to attract Apple users and shift away from traditional hardware competition.
Xiaomi, meanwhile, is targeting Apple’s all-in-one ecosystem users. Its interconnectivity feature enables file and photo transfers between Apple devices and Xiaomi’s 15 series, while enabling users to mirror Xiaomi’s interface on Apple computers.
AI capabilities take center stage as Apple faces delay
The iPhone 16 series was expected to drive upgrades for iPhone 12 and iPhone 13 users, but Apple’s delayed rollout of its “Apple Intelligence” artificial intelligence feature may have dulled some of the excitement. Initially billed as a major selling point, the feature wasn’t available at launch and didn’t roll out until weeks after the phones were released. Counterpoint data revealed that iPhone 16’s initial four-week sales in the US slightly trailed last year’s iPhone 15. In China, Apple Intelligence isn’t expected until April 2025, creating an opportunity for local brands to capitalize on AI advancements.
In the past year, Chinese brands have moved away from standalone AI features, such as background removal, in favor of deeply integrated, system-level AI functionality. By 2024, these AI capabilities were no longer confined to apps but were woven into operating systems.
The term “OS restructuring” resonated across brand launch events, as these new systems integrated large, multimodal models with agent-based intelligence to reshape user interaction.
Oppo’s ColorOS 15, for example, introduced a “one-click” feature that lets users hold down a button to summon AI tools for tasks like image editing, content creation, and document summarization.
Vivo’s X200 series offers similar flexibility for AI activation, including a double-finger hold on the navigation bar. Its OriginOS 5 also includes an “Atomic Island” feature, an integrated AI hub reminiscent of Apple’s “Dynamic Island.”
Honor’s MagicOS 9.0 takes AI further, supporting cross-app and cross-ecosystem functions. CEO Zhao Ming demonstrated several unique features at the launch, including voice commands to order 2,000 cups of coffee or cancel auto-renewals for apps.
The investment in AI is considerable. According to Vivo’s global AI research institute, the company’s cumulative spending on AI exceeds RMB 23 billion (USD 3.2 billion). Zhao said that Honor’s AI experience surpasses Apple’s in the Chinese market, similar to the advantage Apple once had over Android in connectivity.
Price increases amid supply chain strains
In October, flagship models from Vivo, Xiaomi, Oppo, Honor, and OnePlus saw price hikes, ranging from RMB 100–300 (USD 14–42).
An industry insider attributed the hikes to inflationary pressures from rising interest rates and geopolitical conflicts, which drove up the cost of materials like nickel and chromium by at least 5%. Among components, processors and memory experienced the largest price jumps. Analyst Kuo Ming-Chi noted that the new Snapdragon 8 Gen 4 processor now costs USD 180 per chip—a 15% increase.
Memory prices have also hit a two-year high, with the price of 1TB flagship models rising by RMB 500 (USD 68).
Despite some brands cutting back on features, such as haptic engines, fingerprint scanners, and dual speakers, flagship models have largely retained their specifications. “Supply chain price hikes are squeezing everyone,” an industry expert said.
The competition between Android and Apple phones in China is intensifying, with recent data indicating a shift. Counterpoint’s Q3 2024 report shows Apple’s market share fell by 2.6% year-on-year to 13.5%, while domestic brands gained: Vivo’s share rose by 10%, Huawei surged by 30%, and Xiaomi grew by 13%, though Oppo and Honor saw slight declines.
October’s flagship launches were pivotal for each brand, with entry-level models positioned against the iPhone 16 Pro and higher-end models taking on the iPhone 16 Pro Max.
Chinese brands are targeting Apple’s core user base: standard iPhone users who are increasingly upgrading to Pro and Pro Max models. Market data shows a 44% year-on-year increase in iPhone 16 Pro and Pro Max sales—the very segment Chinese brands are now vying to capture.
As China’s smartphone market grows tighter and supply chain pressures mount, Chinese brands have little room for a gradual approach. The battle for high-end market dominance is on, and they are all in.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Qiu Xiaofen for 36Kr.