Apple Inc.'s (NASDAQ:AAPL) iPhone 16 series launch has disappointed China due to its lack of AI features, amid the growing competition from Huawei Technologies in the world's largest smartphone market.

What Happened: On Monday, at the "Glowtime" event, Apple unveiled the AI-enhanced iPhone 16 to stimulate consumer upgrades amid a slowdown in smartphone sales.

However, the tech giant has not yet announced an AI partner in China for the iPhone 16, and its AI software, Apple Intelligence, will only be available in Chinese language next year, reported Reuters.

The iPhone 16 launch was a trending topic on Chinese social media, with AI features being a key point of discussion.

The hashtag "iPhone 16 Chinese version doesn't support AI yet" garnered over 11.33 million views and more than 1,500 comments on Weibo, China's social media platform.

"Whether iPhone 16 has AI or not doesn't affect me, because I'm going to buy Huawei's tri-fold phone," one Weibo user wrote on the platform.

Despite the criticism, some analysts believe the lack of AI features in the iPhone 16 will not significantly impact near-term sales. However, they suggest that Apple needs to swiftly establish an AI application and service ecosystem in China to remain competitive, the report noted.

Anisha Bhatia, senior technology analyst at GlobalData, noted that while Apple intends to roll out its AI integration gradually, Google is set to lead by deploying Gemini AI to 200 million Android devices by the end of 2024.

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Why It Matters: Apple's struggle in the Chinese market is not new. The company's market share in China has been declining, dropping from third to sixth place, while Huawei's smartphone shipments surged by 41% in the second quarter.

Earlier in January, Apple had to slash iPhone 15 prices by $70 for a limited time in China, which suggested a weakening demand for its flagship product.

Meanwhile, Huawei has ramped up its efforts in the smartphone arena. Just two days before the iPhone 16 launch, Huawei's new tri-fold smartphone, the Mate XT, attracted 1.3 million orders within seven hours of opening reservations.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.