Apple to encounter more challenges in China due to constant decline

Apple will continue to face challenges and sales decline in China this year. It is already taking a cautious approach while discussing iPhone production for 2025. A familiar tech analyst has detailed the company’s plan in his recently published blog.

Ming-Chi Kuo says that Apple may face greater challenges in 2025 due to a constant sales decline in China. The company needs to take some significant steps to deal with the market risks and threats hovering over its head this year.

Let’s take a look at these challenges!

Challenge 1: iPhone Sales

The first and foremost challenge for Apple in China is iPhone sales. Despite several efforts, the iPhone growth is nearly stagnant in the country. Apple is making notable upgrades to its devices. Though they don’t seem as worthy as other models.

Ming says even the upcoming iPhone SE 4 (which is considered a budget-friendly device) won’t increase sales. Instead, the shipments may decline by 6% YoY. Apple also faced a drop of 10-12% in iPhone sales in December 2024.

Challenge 2: Innovation

Apple is implementing major upgrades to its iPhones, yet lacks innovation. It is still struggling with a thin design for its handsets. Inputs reveal that the US tech giant may unveil an ultra-thin iPhone (5.5mm) and a new foldable in H2 2025. But being super thin, these devices will only support eSIM, which isn’t a major point for Chinese consumers.

iPhone 17 is also unlikely to excite consumers. As per Ming, the company uses downgraded parts paired with a high price which ultimately limits users’ interest.

Challenge 3: No AI

While every other tech maker gave major importance to AI in their devices, Apple hasn’t even entered the trend! The OEM launched Apple Intelligence which remained absent in China. It is expected to roll out this year with a few AI capabilities.

Seeing this AI delay, iPhone users are now not interested in “Intelligence”. A survey showed some iPhone owners said they consider switching to other brands.

Challenge 4: Chinese rivals

Huawei and other Chinese brands are constantly showing what true AI use and innovation looks like. Mate XT is the first example in this case that redefined the foldable category. HarmonyOS NEXT stands second as it’s the self-developed OS with multiple AI functionalities, ensuring security at its peak.

It would be worth seeing how Apple comes out of these challenges in China this year.

Apple to encounter more challenges in China due to constant decline (Image Credits: Ming-Chi Kuo)

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