Apple’s market share shrinks in China, iPhone shipments down: Kuo

the apple It is losing market share in China due to falling iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock fell by 2.4%.

“Apple has taken a cautious stance when discussing 2025 iPhone production plans with major suppliers,” TF Securities analyst Kuo wrote. the message. He added that despite the launch of the new iPhone SE 4, shipments are expected to fall 6% year-on-year in the first half of 2025.

Kuo expects Apple’s market share to continue to decline, as two of the upcoming iPhones are so thin that they likely only support eSIM, which the Chinese market doesn’t currently promote.

“Both of these models will be able to meet the challenges of the shipping moment if the design is not changed,” he wrote.

Kuo wrote that overall smartphone shipments in China were flat in December from a year earlier, but iPhone shipments fell 10% to 12%.

There is also no “evidence” on the device from Apple Intelligence artificial intelligence offering, is driving hardware upgrades or service revenue, according to Kuo. He wrote that his supply chain survey found that the feature “has not increased demand for an iPhone replacement,” adding that he believes the feature’s appeal has “diminished significantly compared to cloud-based AI services, which have advanced rapidly in the coming months.”

Kuo wrote that Apple’s iPhone shipments will total about 220 million units by 2024 and about 220 million to 225 million this year. That’s “below the market consensus of 240 million or more,” he wrote.

Apple did not immediately respond to CNBC’s request for comment.

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