Since August, Apple has had its worst day due to reports about China and AI struggles.

• On Thursday, Apple stock experienced its worst day since Aug. 5, dropping 4%, due to reports of weak iPhone sales in China.
• In 2025, the iPhone maker's stock price has decreased by nearly 12% from its highest point in December, making it the poorest-performing of the seven largest technology stocks.
• On Monday, Ming-Chi Kuo, a notable Apple supply chain analyst, stated that he believes Apple Intelligence isn't increasing iPhone demand.

On Thursday, the stock market experienced a 4% decline, its worst day since August 5th, after multiple reports emerged about weak iPhone sales in China.

In 2025, the iPhone maker's stock price has decreased by nearly 12% from its highest point in December, making it the poorest-performing of the seven largest technology stocks.

In 2024, Vivo and Huawei surpassed Apple as the top smartphone sellers in China, according to a report from Canalys, a market research firm.

Last year, in China, Apple shipped 15% of the 284 million phones sold, which was a 17% decrease from the previous year. However, Vivo and Huawei experienced growth.

TSMC, a crucial Apple supplier, reported a forecast for the first quarter that indicated a nearly 6% decline in smartphone sales. TSMC, which produces the chips used in Apple's devices, attributed the drop to seasonality. TSMC stated that AI chips accounted for more than half of its revenue in the fourth quarter, surpassing smartphones, which had previously been its largest business.

According to Ming-Chi Kuo, a notable Apple supply chain analyst, iPhone shipments are expected to decline by 6% annually in the first half of 2025, with most of the decline occurring in the second quarter. Kuo believes that Apple Intelligence, the company's AI system which is not yet available in China, is not contributing to the increase in iPhone demand.

According to Kuo, there is no proof that Apple Intelligence can positively impact hardware replacement cycles or service businesses.

Apple reports its December quarter results on Jan. 30.

Morgan Stanley's Woodring predicts iPhone 17 upgrades and Apple correction based on fundamentals.