As Apple grapples with regulatory delays to its AI features in China, domestic smartphone makers are moving fast to seize the moment. The country remains the world’s most competitive handset market, with no single company holding more than a fifth of sales. That structure gives rivals room to attack quickly when a global leader shows signs of hesitation. Over the past year, leading Chinese brands have introduced new apps and AI-driven tools designed to make switching from an iPhone easier. Their hope is straightforward: if Apple cannot bring its AI ambitions to China on time, domestic players can position themselves as more agile and innovative, the Financial Times reported.
Regulatory tensions create an opening
Beijing’s internet regulator has held back approval for Apple’s planned AI features, reflecting strained geopolitical relations and concerns around data governance. That delay has amplified a perception that Chinese brands have greater freedom to experiment with generative models and AI assistants. Analysts say these companies are adopting a more open and aggressive strategy, betting that consumers will embrace new features even before a clear industry standard emerges. For Apple, the regulatory pause has come at a delicate moment. Its sales in China slipped earlier this year, and although the iPhone 17 launch revived momentum, its broader AI roadmap is still on hold.
Domestic brands sharpen their pitch to iPhone users
Companies such as Honor, Oppo, Xiaomi, Vivo and Huawei have spent years trying to overcome one of Apple’s strongest advantages: seamless data transfer and integration across devices. Their new tools aim to close that gap. Honor has updated its Device Clone app to help users migrate photos, messages and contacts simply by scanning a QR code from an iPhone. Its companion platform, Honor Connect, allows files to be exchanged between Android and iOS in a way that mirrors AirDrop. Oppo has taken a different approach, building AI assistants that can track spending through screenshots or guide users through gym equipment using the phone’s camera. Xiaomi is promoting cross-device synchronisation tools designed specifically with iPhone owners in mind.
AI becomes the centre of the rivalry
The race now extends beyond hardware. Chinese manufacturers see AI as the arena where they can finally differentiate themselves at scale. Honor’s latest devices offer tools to compare coupons, book taxis faster and create short videos directly from the camera interface. Oppo’s software allows users to handle calls and messages from Apple devices on their Oppo phones in real time. These features reflect a growing confidence that China’s AI development is advancing more quickly than Apple’s more cautious, privacy-led approach. Executives at several Chinese phonemakers describe Apple as both a benchmark and a target, arguing that its slower AI rollout offers an unusually clear moment to capture high-end users.
How far Apple’s grip can be loosened
Despite this push, Apple continues to command strong loyalty among premium Chinese consumers. Its recent quarterly results showed a recovery after the iPhone 17 launch, with
sales rising sharply year on year. Researchers say the initial fear that the lack of AI features would deter customers did not materialise, at least in the short term. But the pressure is real. Domestic brands report rising conversion rates among online buyers of their flagship models, many of whom are moving from Apple for the first time. For Apple, the challenge is compounded by slower global smartphone growth, which makes each percentage point of Chinese market share more valuable.
Breaking the ecosystem barrier
Industry analysts see the latest strategy from Chinese phonemakers as an attempt to dismantle Apple’s long-standing ecosystem lock-in. By making cross-platform file sharing, messaging and device synchronisation easier, they hope to chip away at the psychological and technical barriers that have historically kept users inside the iOS environment. Success outside China remains limited, especially in Europe where Chinese brands still hold a small share of the premium market. But within China, the campaign is gathering pace. With AI increasingly central to consumer expectations, Apple faces a landscape where rivals are innovating faster, regulators are imposing tighter scrutiny and users are being given more reasons than ever to consider switching.
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