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Apple is dropping market share in China as a result of declining iPhone shipments, provide chain analyst Ming-Chi Kuo wrote in a report on Friday. The inventory slid 2.4%.
“Apple has adopted a cautious stance when discussing 2025 iPhone manufacturing plans with key suppliers,” Kuo, an analyst at TF Securities, wrote within the post. He added that regardless of the anticipated launch of the brand new iPhone SE 4, shipments are anticipated to say no 6% yr over yr for the primary half of 2025.
Kuo expects Apple’s market share to proceed to slip, as two of the approaching iPhones are so skinny that they doubtless will solely assist eSIM, which the Chinese language market at the moment doesn’t promote.
“These two fashions may face transport momentum challenges except their design is modified,” he wrote.
Kuo wrote that in December, total smartphone shipments in China have been flat from a yr earlier, however iPhone shipments dropped 10% to 12%.
There’s additionally “no proof” that Apple Intelligence, the corporate’s on-device artificial intelligence providing, is driving {hardware} upgrades or providers income, in line with Kuo. He wrote that the function “has not boosted iPhone alternative demand,” in line with a provide chain survey he carried out, and added that in his view, the function’s attraction “has considerably declined in comparison with cloud-based AI providers, which have superior quickly in subsequent months.”
Apple’s estimated iPhone shipments whole about 220 million items for 2024 and between about 220 million and 225 million for this yr, Kuo wrote. That’s “beneath the market consensus of 240 million or extra,” he wrote.
Apple didn’t instantly reply to CNBC’s request for remark.
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