Apple faces sharp drop in iPhone sales in China

Apple is facing a major challenge in the Chinese market, where revenue from iPhone sales fell 18.2% in the December quarter. This decline represents a significant setback in its second largest market after the US. Meanwhile, Huawei Technologies, a key competitor, has managed to regain the lead in smartphone sales, underscoring the changing dynamics in the global technology arena.

The decline in iPhone sales and the causes

According to a report by Counterpoint Research, Apple's $AAPLfell to third place among smartphone makers in China during the last quarter, where it now controls about a sixth of the market. The slump in iPhone sales in China has also had a major impact on the company's global results, which saw a 5% drop in sales during the key Christmas period.

One of the reasons for this decline is the uneven debut of the latest generation of iPhones. Although the new models started sales in China promisingly, they have gradually lost momentum. While Apple has added AI innovations to…