Is Hongkongers' excitement over Apple's iPhone 16 enough to make them spend?

Apple’s latest iPhone 16 has sparked familiar debates in Hong Kong, including admiration for its sleek design and performance, but also hesitation over its steep price. 

Launched on 9 September, the phones boasted a series of new features including Apple Intelligence, enhanced camera capabilities, a new multifunctional button and a tougher ceramic shield. 

Media intelligence firm CARMA observed over 7,000 mentions related to iPhone 16 among Hongkongers, with 39.8% positive, 8% negative and 52.2% neutral sentiments. 

According to its exclusive report, Hong Kong netizens are excited by the improved performance, better cameras, and sleek design of the iPhone 16, and are eager to make a purchase.   

They are also focused on the latest chip tech and performance improvements of iPhone 16. However, due to the high price, users are considering alternatives such as Huawei. 

In a price conscious market such as Hong Kong, iPhones are being replaced by more affordable alternatives. Euromonitor data showed that while iPhone remains the category leader, its brand share has decreased this year compared to 2019. In contrast, brands such as Xiaomi have steadily gained market share over the past few years, highlighting the shift toward budget-friendly options among consumers. 

Does simply being a luxury product work in a price-sensitive market? 

While there’s still a demand for luxury and premium goods, industry players MARKETING-INTERACTIVE spoke to believed that in Hong Kong, luxury alone doesn’t cut it, it's about proving worth beyond the brand. 

Jacopo Pesavento, CEO, Branding Records, said the iPhone 16 is more than a product; it’s a test of whether Apple can balance prestige and practicality without falling into a pricing war.  

“Yet, one can't help but wonder—beyond the minor improvements in performance and camera quality, what does the iPhone 16 truly offer that's new? For all the talk of innovation, this model feels like a dressed-up version of its predecessor, and Hong Kong consumers are sharp enough to see through the shine,” he added. 

True enough, shifting regulations and high inflation in Hong Kong are prompting consumers to reassess their spending, according to Rona Tabora, senior insights executive, Initiative. “As a result, luxury market players must reevaluate their operations to minimise negative impacts while fostering positive brand associations,” Tabora added. 

This is coupled with Euromonitor’s 2023 “Voice of the Consumer: Lifestyles Survey”, which suggested brands must create value as consumers navigate a balance between frugality and indulgence.  

“Affordable premium products, which offer higher quality, better design, or unique features at more accessible price points, appeal to those seeking value without compromising on quality. This trend explains why consumers are considering alternatives such as Huawei in light of iPhone’s higher price,” she added.

A strong brand reputation and heritage can help justify a higher price point, but the premium brand emblem does not necessarily hold as much sway as it used to, said Shufen Goh, co-founder and principal of R3.  

“The product itself must offer a compelling value proposition and be marketed effectively to resonate with the target audience,” she added. 

How can luxury brands ensure sustainable growth? 

No surprise, Hongkongers will seek ways to better finance the purchase with iPhone 16’s high price point, such as through deals with telcos and credit cards, or with flexible payment plans and cash rebates, according to Johnny Ng, regional head of strategy and partnerships, GroupM Hong Kong. 

“In today's realities of the macroeconomic environment, this eases consumers' burden of a huge financial expense whilst still benefiting from owning the new iPhone — all with the bonus of having gotten a ‘good deal’ in purchasing the product,” he added. 

Interestingly, what makes Hong Kong special is the consumer buying behaviour. According to a recent study by the Mastercard Economics Institute (MEI), Hong Kong consumers are found to be actively buying both luxury and casual apparel. 

This finding sets them apart from many other destinations where casual wear is significantly outpacing luxury, said Ng. “This dual demand presents a unique opportunity for brands — where they can strategically target both luxury-seeking and value-conscious consumers in Hong Kong.” 

Today, marketing premium brands requires flexible handling of the old luxury marketing playbook, said R3’s Goh. “It is difficult to be ultra-discerning about the context within which your brand shows up on consumers’ social feeds, so premium brands need to return to the basics to attain sustainable growth.”  

Goh suggested brands should:  

• Understand what consumers expect and deliver a solid customer experience. 

• Create relevant brand messages and communicate not just perceived exclusivity, but also tangible value. 

“A strong focus on innovation within product and consumer experience, complimented with a strong pricing strategy, can help premium brands drive business growth without needing to rely on price wars,” she added. 

Luxury businesses can achieve sustainable growth by prioritising value creation in their innovation strategies (i.e. paper-based screen, battery technology, etc), including a diverse price range in their product and service offerings, said Initiative’s Tabora. 

Brands such as iPhone could enhance loyalty by innovating in resale and repair services, aligning with consumers' values, she said. “This approach not only helps customers access desired products more affordably but also addresses ecological concerns, fostering a more sustainable relationship with luxury.” 

Moving forward, The iPhone 17 will need to break this cycle of mediocrity—not just to woo back its audience but to remind the world why Apple remains a name worth paying for, said Branding Records’ Pesevanto. “If it doesn't deliver something truly groundbreaking, that Huawei alternative is going to look more appealing by the day.” 

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