Tech Giant Struggles in China: iPhone Shipments Plummet
The world of tech is abuzz with news that Apple’s market share in China is taking a hit due to a decline in iPhone shipments. According to a report by supply chain analyst Ming-Chi Kuo, the tech giant’s stock took a 2.4% dive on Friday.
Cautious Outlook for 2025
Kuo, an analyst at TF Securities, revealed that Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers. Despite the anticipated launch of the new iPhone SE4, shipments are expected to decline by 6% year-over-year for the first half of 2025.
eSIM Limitations Pose Challenges
Two of the upcoming iPhones are so thin that they will likely only support eSIM, which the Chinese market currently does not promote. This limitation could lead to shipping momentum challenges unless the design is modified, Kuo warned.
Chinese Smartphone Market Remains Flat
In December, overall smartphone shipments in China remained flat from the previous year, but iPhone shipments dropped by 10-12%. This decline is a significant concern for Apple, which has long relied on the Chinese market for a substantial portion of its revenue.
AI Feature Fails to Impress
Kuo’s supply chain survey revealed that Apple Intelligence, the company’s on-device artificial intelligence offering, has not driven hardware upgrades or services revenue. In fact, the feature’s appeal has significantly declined compared to cloud-based AI services, which have advanced rapidly in recent months.
iPhone Shipments Fall Short of Expectations
Apple’s estimated iPhone shipments for 2024 and 2025 are around 220 million units, below the market consensus of 240 million or more. This shortfall could have significant implications for the company’s bottom line.
Apple Remains Mum
Apple did not immediately respond to a request for comment on the report. As the tech giant struggles to regain its footing in China, one thing is clear: something needs to change to justify its valuation.
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