FX168 Financial News (North America) — Apple is expected to launch the next generation of AI-based iPhones in September, but its Apple Intelligence software platform may not be enough to trigger a new sales supercycle in 2025. UBS Global Research Analyst David Vogt (David Vogt) said that Apple's market share in China was taken over by local companies such as Huawei, which substantially limited iPhone sales growth.
Apple is highly dependent on iPhone sales in the Chinese market, which is Apple's third-largest market after America and Europe. In 2023, the Chinese market contributed 72.56 billion US dollars to Apple's total revenue of 383.3 billion US dollars. The American market contributed $162.6 billion, and the European market contributed $94.3 billion.
Huawei's recovery has intensified Apple's competition in China. In 2019, Huawei suffered setbacks due to US sanctions against high-performance smartphone chips, but since then it has launched phones equipped with advanced chips. Coupled with the poor economic environment, iPhone sales in the region slowed at the beginning of this year.
In order to increase sales in the Chinese market, Apple is offering significant discounts in Greater China. Judging from some indicators, this initiative has paid off. According to Bloomberg, iPhone shipments increased 50% in April and 40% in May.
(Source: Yahoo Finance)
Despite these advances, Huawei could still threaten Apple's growth in China. To address this threat and expand sales in other regions, Apple announced the new Apple Intelligence platform at the WWDC event in June. However, the platform requires a powerful processor, which is limited to the iPhone 15 Pro series and future iPhone models, which means that users with older iPhones or even standard iPhone 15 will have to pay to use the new software.
However, Apple isn't the only company to launch generative artificial intelligence technology. Google and Samsung have launched their own generative artificial intelligence smartphones, and more Android device makers are expected to follow suit.
Samsung is also preparing for next week's annual Unpacked event, which is expected to launch its latest foldable phone, while Google plans to release its lineup of upgraded Pixel smartphones in August.