iPhone 17 goes on sale globally as Apple faces China rivals and AI doubts

The iPhone 17 hit store shelves worldwide on Friday, drawing lines from Beijing to London.

But beyond the launch buzz, Apple is under pressure to prove itself, grappling with questions over its artificial intelligence plans, as well as increasing competition. 

Products on display for the first time include the iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air, as well as new Apple Watch and AirPods models.

While they were available for preorders in the U.S. from Sept. 12, the global launch holds particular significance as Apple takes on growing competition in overseas markets. 

One of those markets is China, where customers waited for hours — and even overnight — to get their hands on the new iPhone 

First in line at the Apple flagship Store in Sanlitun, Beijing, this morning, was Liu — he did not wish to be identified by his full name — who told CNBC that he had been queuing since 11 p.m. local time Thursday for his chance to pick up the iPhone 17 Pro Max.

He said he was excited about the smartphone’s new color and exterior design, which Apple says has improved the phone’s heat dissipation. 

Notably, Liu also said he has changed to Apple from Huawei in recent years, saying he preferred the iPhone for daily use and entertainment. 

Another person, who wished to be identified only by his surname, Yang — an erstwhile Xiaomi user — said he had been waiting to get his hands on the latest iPhone, preferring its operating system. 

Both Liu and Yang expect many Chinese residents to buy their first iPhone this year due to the new features, including larger internal storage. 

If that trend were to pan out, it would be welcome news for Apple, which has lost market share in China to players such as Huawei and Xiaomi. 

After years of leadership in the region, the iPhone-maker now only holds 10% of the Chinese smartphone market, trailing local players like Oppo, Huawei, Xiaomi and others, according to data from Omdia.

So far, the signs are positive for the iPhone 17 series in China. Last Friday, JD.com — one of China’s largest ecommerce platforms — saw the first minute of iPhone 17 series preorders surpass the first-day preorder volume of last year’s iPhone 16 series, the company reported. 

At 10 a.m. local time on Friday, JD.com said that iPhone 17 trade-in sales were four times higher than the same period last year.

In the much smaller but affluent market of Singapore, the redesigned iPhone 17s were also met with fervor, with long lines forming outside Apple outlets across the city. 

Iman Isa and Daniel Muhamed Nuv, two young professionals in Singapore, both queued for hours at Apple’s outlet in the city’s iconic Marina Bay mall to buy iPhone 17 Pros, which they said were their first new phones in years. 

Citing the fresh design, longer battery life and improved camera, they said the new phones offer enough to keep them loyal to the Apple ecosystem.

Based on preorder times and consumer feedback, the initial global demand for the iPhone 17 series appears largely positive, said Le Xuan Chiew, a research manager at Omdia.

The iPhone 17 base model in particular has outperformed expectations, as the pricing at launch remained unchanged from its predecessor despite upgrades in memory storage, Chiew said. 

In Singapore, customers arriving at Apple outlets had also been looking to nab some of the company’s new AirPods Pro 3, citing the product’s live translation feature as a major selling point.

In London, lines were notably longer than they were at last year’s launch of the iPhone 16, and customers appeared more interested in the premium offerings — the Pro and Pro Max models — this time around.

“For the last five years, I’ve been in a pattern of constantly upgrading my phone, because every year Apple is bringing something new to the table,” one customer, Jasmine, said. “I just love having that experience of Apple every year.”

Meanwhile, Michael, who described himself as a content creator, said he was drawn by the battery and camera.

“I thought about going for the [iPhone] Air, but I just don’t know whether or not the battery is going to be able to hold up. And that single camera? I don’t know, it’s just a little bit off-putting on the back,” he said of Apple’s thin iPhone 17 offering.

A successful iPhone 17 launch could help reassure Apple investors after a somewhat underwhelming rollout of its artificial intelligence features, which began late last year.

Speaking to CNBC’s “Squawk Box Europe” last week, Ben Wood, chief analyst at CCS Insight, lauded Apple’s latest product launches but said the company now needed to deliver on artificial intelligence. 

“There is no question that Apple needs to deliver on AI,” he said, noting that the company had “dropped the ball” last year by making big promises that failed to materialize.

“Apple has to catch up [in AI], but right now, I think they’ve got enough runway to be able to cope in the intervening period.”

– CNBC’s Arjun Kharpal and Eunice Yoon contributed to this report