Understanding the Shift in Apple's Market Position

Apple faces significant challenges in the competitive smartphone market in China, where it has fallen out of the top five players. The company's struggles are partly due to Huawei’s aggressive expansion, growing its market share by 41% annually and offering popular products like foldable phones that Apple does not produce. This gap is further widened by Huawei's advancements in artificial intelligence features that are quickly integrated into their devices, leaving Apple in a reactive position. As Beijing imposes bans on foreign-developed AI models, Apple's capability to deliver AI functionalities in China is hindered, forcing it to seek local partnerships for compliance.