**Apple’s Declining iPhone Shipments in China: Analyst Kuo’s Insights**
Apple is facing a significant challenge in China as its iPhone shipments continue to decline, according to a report by supply chain analyst Ming-Chi Kuo. The tech giant is losing market share in the region, leading to a 2.4% drop in its stock value.
Challenges in iPhone Production
Kuo highlighted that Apple has been cautious in discussing its 2025 iPhone production plans with key suppliers. Despite the upcoming launch of the new iPhone SE 4, shipments are expected to decrease by 6% year over year in the first half of 2025. This cautious approach could impact Apple’s market share in the region.
Thin iPhone Models and eSIM Support
Two of the upcoming iPhone models are so thin that they may only support eSIM, a feature not widely promoted in the Chinese market. Kuo pointed out that these models could face shipping challenges unless their design is modified to align with market preferences.
Impact of Apple Intelligence
Kuo also noted that Apple Intelligence, the company’s on-device artificial intelligence offering, has not significantly boosted iPhone replacement demand or services revenue. His supply chain survey revealed that the feature’s appeal has declined compared to cloud-based AI services, which have seen rapid advancements in recent months.
Despite these challenges, Apple’s estimated iPhone shipments for 2024 and 2025 are below the market consensus of 240 million units. Kuo expects shipments to range between 220 million and 225 million units this year, indicating a potential struggle for Apple to meet market expectations.
**Humanizing Touch:**
As technology continues to evolve, it’s fascinating to see how consumer preferences shape the market. Have you ever wondered how thin smartphones can get before compromising functionality? The balance between design and practicality is a constant struggle for companies like Apple, trying to stay ahead in a competitive industry. The insights provided by analysts like Kuo offer a glimpse into the intricate world of tech trends and consumer behavior, highlighting the challenges faced by even the biggest players in the market.
