Why is Apple increasingly unable to compete in the Chinese market?

Apple Inc
Technology News Beijing time on February 18, according to the South China Morning Post: Analysts said that Apple will lead the Chinese smartphone market by the end of 2023, but due to the slow integration of artificial intelligence functions in the iPhone and The current popularity of foldable mobile phones in China has made it difficult for Apple to develop in the Chinese market, and the prospects are still unclear.
Although more generative AI technology is expected to launch later this year with the release of iOS 18, Apple’s relative slow pace in generative AI innovation has raised concerns as competitors rush to launch Self-developed large language model (LLM) and high-end foldable mobile phone.
Despite Apple’s leadership in the market, Apple reported revenue in Greater China fell nearly 13% in the December quarter. Apple's weekly smartphone shipments in China have fallen by 30% to 40% in recent weeks, a downward trend expected this year, according to a recent blog post by TF International Securities analyst Kuo Ming-chi. will last.
Ming-Chi Kuo wrote in the post: "The main reason for the decline is the return of Huawei and the fact that foldable phones have gradually become the first choice for high-end users in the Chinese market."
It is reported that Counterpoint data shows that the Chinese smartphone market will decline from 2024 to Huawei Technology Ltd. returned to No. 1 in the first two weeks. According to IDC data, Huawei returned to the top five in mainland China with a shipment growth of 36.2% in the fourth quarter of last year.
Tech media The Information reported earlier this month, citing anonymous sources, that Apple is also developing a prototype of a clamshell foldable iPhone as Chinese rivals prepare to launch more high-end phones. According to a report by Whiplash on February 18, Apple has currently suspended the development of foldable iPhones because the supplier’s screen failed to pass Apple’s strict testing standards. (Author/Yin Mingshun)
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