Apple Holiday Quarter Sale Slows Amid AI Delays and Chinese Competition
Analysts expect Apple’s holiday quarter sales to decrease because of intensifying competition with Chinese smartphone makers and delayed AI platform adoption. Industry experts predict Apple iPhone sales growth during the last quarter of 2024 will remain modest which creates challenges for Apple revenue projection targets.
According to Reuters, Apple as well as its rivals Samsung and Google are dependent on AI for the sales of their smartphones. Though Apple’s latest iPhone 16 lacked AI features on its launch in September 2024 and will only be available later this year in many regions.
Jane Hepburne Scott, investment manager at Aegon Asset Management said, “AI is the new technology innovation, the fact that Apple’s handsets are lagging behind on capabilities is a key reason why their competitive positioning has weakened, and the company has lost market share.”
Challenges in the Holiday Quarter
The holiday season quarter usually delivers amazing results for Apple because customers purchase new iPhones along with other products. This year’s financial performance might show negative effects coming from three primary factors: supply chain problems alongside delayed artificial intelligence progress and high competition through Google’s Samsung AI devices.
Projections indicate that iPhone shipment numbers reached lower numbers than Apple’s previous annual totals despite the company’s intense advertising efforts paired with its high-end product classification. Google Samsung AI devices are ruling the market in implementing flagship AI characteristics that become active earlier than Apple’s AI integration.
According to IDC data, Apple’s global smartphone market share has come down to 23% in the last quarter of 2024 from 25% earlier. This is a result of Apple sales declining in China due to fierce rivalry from domestic manufacturers.
Apple AI Integration
One of the key concerns for Apple investors is the delay in Apple AI integration within its latest devices. Technological advancements featuring artificial intelligence by Google and Samsung have appeared in their flagship smartphones but Apple’s cautious approach to AI integration has raised doubts about its focus on AI development.
The global smartphone market depends increasingly on AI features according to industry experts who point to features such as real-time translation together with upgraded photography characteristics and automation through artificial intelligence. As a result of Apple delaying its technological advancements, the recent iPhone model release received diminished consumer enthusiasm which damaged total revenue.
Chinese Competition Intensifies
The Chinese market where Apple operates has presented major challenges to the company. Chinese smartphone brands Huawei, Oppo, and Vivo succeeded by producing high-end phones at prices that competition found difficult to challenge. The resurgence of Huawei threatens Apple directly because the company released new devices integrating fifth-generation wireless technology as well as a new Harmony OS in Mate 70, the company’s latest smartphone.
Market analysts report that Chinese consumers are switching to local brands instead of Apple products because they prefer domestically produced technologies. Data showed that Apple’s share dropped to 10% from 17% in China. However, the analyst says that Apple’s revenue growth strategy will help in bringing up the company’s sales by 1.9% in the first quarter of 2025.
