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Apple's ( AAPL ) AI software in Chinese available only next year

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Chinese criticise iPhone 16's lack of AI

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Analysts say AI absence will not impact near-term sales

BEIJING, Sept 10 (Reuters) - Apple's ( AAPL ) new iPhone

launch drew scorn on Tuesday for its lack of artificial

intelligence features in China, a challenge for the U.S. giant

as it battles growing competition from Huawei Technologies

in the world's largest smartphone market.

Apple ( AAPL ) unveiled its long-awaited, AI-boosted iPhone 16 on

Monday, hoping the new features would drive consumers to upgrade

amid a slowdown in its smartphone sales, which account for more

than half of its total sales.

But Apple ( AAPL ) has yet to announce an AI partner in China to

power the 16s, and Apple Intelligence, the company's AI

software, will be available in Chinese language only next year.

The iPhone 16 launch dominated discussions on Chinese social

media on Tuesday, ahead of Huawei's unveiling of a three-way

foldable smartphone later in the day.

On Weibo, China's X-like platform, three of the top 10

trending topics were related to the iPhone 16 launch, with AI

features among a key topic of discussion.

The hashtag "iPhone 16 Chinese version doesn't support AI

yet" attracted 11.33 million views and over 1,500 comments on

Weibo.

"What's the point of buying it if you can't use AI?" wrote

one Weibo user.

Another commented, "Without AI as the biggest selling point,

it should be half price."

The iPhone 16 and 16 Plus will cost the same as models they

replace. In China, Apple ( AAPL ) aggressively slashed prices earlier

this year, as government restrictions on the use of

foreign-branded phones and increased domestic competition

weighed on its smartphone sales.

Other users on Weibo compared Apple's ( AAPL ) launch with Huawei's

new phone, due to be released as the Chinese firm seeks to widen

its lead over Apple ( AAPL ) in its home market.

"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,

underscoring the growing popularity of Huawei's latest models in

China that helped it replace Apple ( AAPL ) as the country's No.3

smartphone vendor in the second quarter.

But some analysts predicted the absence of AI features in

the iPhone 16 was unlikely to have a big impact on near term

sales.

"Chinese consumers are not yet driven to upgrade by AI

capabilities ... However, in the long run, as domestic brands

use AI as a key differentiator for their flagship products, it

will negatively affect Apple ( AAPL )," said Toby Zhu, an analyst at

technology market research firm Canalys.

Zhu said Apple ( AAPL ) needs to localise its offerings and swiftly

establish an AI application and service ecosystem in China to

remain competitive.

Apple's ( AAPL ) powerful operating system remains a draw for Chinese

consumers, according to Will Wong, an analyst at IDC.

"The key competitive advantage of Apple ( AAPL ) is its strong

customer stickiness. Thus, the replacement needs of the users of

the iPhone 11, 12, or 13 series could still support the sales of

Apple ( AAPL ) in the absence of AI."

"It's still too early to say who will win," Wong said.

Pre-orders for the new iPhone start on Friday in China

through online retailers such as JD.com ( JD ), with deliveries

beginning on Sept. 20.