Apple Faces Declining iPhone Sales and Market Share in China

Analyst reports highlight a 10-12% drop in iPhone shipments and design challenges for upcoming models in a critical market.

Apple's iPhone shipments in China fell by 10-12% year-over-year in December 2024, reflecting a loss of market share in the region.
Supply chain analyst Ming-Chi Kuo notes that Apple's 2025 iPhone production plans are conservative, with shipment projections of 220-225 million units falling short of market expectations of 240 million.
Design choices for upcoming iPhone models, including eSIM-only functionality, are raising concerns about their suitability for the Chinese market, where eSIM adoption is limited.
Apple's on-device AI feature, Apple Intelligence, has not significantly driven hardware upgrades or boosted services revenue, according to Kuo's findings.
Despite these challenges, Apple remains a dominant player globally, though analysts emphasize the need for strategic adjustments to regain traction in China.