Apple(US:AAPL) Feng Huang Wang·2025-12-08 00:26Core Insights - Apple is facing increasing pressure from Chinese smartphone manufacturers who are promoting switch applications to attract iPhone users to Android, as Apple has not yet launched AI features in China, the world's largest smartphone market [1][3] Market Competition - The top five Chinese smartphone manufacturers have launched switch applications this year, facilitating data migration from Apple's iOS to their devices, or allowing users to keep their Apple devices while using Chinese brand phones [1] - The Chinese smartphone market is highly competitive, with no single manufacturer holding more than 20% market share. Vivo has overtaken Apple as the market leader, achieving an 18.5% share in Q3, while Apple, Honor, OPPO, Xiaomi, and Huawei hold between 13.6% and 16.4% [1] AI Development and Innovation - Chinese manufacturers believe their AI capabilities and innovations, such as foldable phones, make their products attractive enough to win over loyal Apple users [3] - OPPO's latest smartphone features an AI assistant that tracks daily spending and provides real-time fitness guidance, while Honor's new model helps users find discounts and coordinate ride-hailing services [3] User Migration Strategies - Honor has upgraded its switch application, allowing users to migrate photos, messages, and contacts from Apple devices by scanning a QR code. The Honor Connect app supports file transfers with iOS devices, similar to Apple's AirDrop [3] - Among consumers purchasing Honor's flagship Magic V5 online, 37% switched from Apple devices using these tools, indicating success in attracting high-end Apple users [3] Other Manufacturers' Initiatives - Other Chinese manufacturers are also enhancing their offerings to attract Apple users. Xiaomi's founder promoted new features for file transfer and notification synchronization between Xiaomi phones and iPhones [4] - OPPO's latest operating system allows users to answer calls and reply to messages from Apple devices directly on OPPO phones [4] Sales Performance - Apple's sales in China declined by 4% year-on-year in the quarter ending September 30, but CEO Tim Cook expects sales to "recover growth" in the upcoming quarter [4] Consumer Sentiment - Counterpoint estimates that after the iPhone 17's release in mid-September, Apple's sales in China increased by 22% year-on-year, suggesting that consumer concerns over the lack of AI features are lower than expected by Chinese competitors [6] Market Dynamics - Analysts indicate that while Chinese manufacturers' new features have not significantly impacted Apple's dominance in high-end markets outside China, their efforts to convert users pose a notable challenge to Apple, especially as global smartphone sales growth has slowed to single digits [7]