Apple is Losing Market Share in China Due to Declining iPhone Shipments, Says Analyst
Apple’s market share in China is expected to continue to slide due to declining iPhone shipments, according to a report by supply chain analyst Ming-Chi Kuo. The company’s stock slipped 2.4% on the news.
Kuo, an analyst at TF Securities, notes that Apple has been cautious in its discussions with suppliers about its 2025 iPhone production plans. He expects shipments to decline 6% year over year for the first half of 2025.
The report also suggests that two upcoming iPhone models, which are expected to support only eSIM, may face shipping challenges in China, where the technology is not widely adopted. Additionally, Kuo notes that Apple’s on-device artificial intelligence offering, Apple Intelligence, has not driven hardware upgrades or services revenue and has actually seen its appeal decline compared to cloud-based AI services.
Kuo’s report also suggests that overall smartphone shipments in China were flat in December, with iPhone shipments dropping 10% to 12% year over year. He estimates that Apple’s iPhone shipments for 2024 will total around 220 million units, below the market consensus of 240 million or more.