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apple Supply chain analyst Ming-Chi Kuo wrote in a report on Friday that Apple is losing market share in China as iPhone shipments decline. The stock fell 2.4%.
“Apple has taken a cautious stance when discussing 2025 iPhone production plans with major suppliers,” TF Securities analyst Ming-Chi Kuo wrote in a report. postal. He added that despite the expected launch of the new iPhone SE4, shipments in the first half of 2025 are expected to fall by 6% annually.
Kuo Ming-Chi predicts that Apple’s market share will continue to decline because the two upcoming iPhones are very thin and are likely to only support eSIM, and eSIM has not yet been promoted in the Chinese market.
“Both models may face transport dynamics challenges unless the design is modified,” he wrote.
Ming-Chi Kuo wrote that in December, China’s overall smartphone shipments were the same as the same period last year, but iPhone shipments fell by 10-12%.
Kuo said there was “no evidence” that the company’s on-device artificial intelligence product, Apple Intelligence, was driving hardware upgrades or services revenue. He wrote that based on supply chain surveys he conducted, the feature “has not boosted iPhone replacement demand,” adding that in his view, the feature’s appeal “is significantly reduced compared to cloud-based AI services.” , and cloud-based artificial intelligence services in the following months.
Kuo wrote that Apple expects iPhone shipments to total about 220 million units in 2024 and about 220 million to 225 million units this year. That’s “below the market consensus of 240 million or more,” he wrote.
Apple did not immediately respond to a request for comment.
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