Core Viewpoint - Apple is facing significant market pressure in China, with a decline in smartphone shipments and increased competition from domestic brands, despite recent product launches aimed at revitalizing its presence in the region [1][5][6]. Product Launch and Design Changes - The Apple 2025 Fall Launch introduced the iPhone 17 series and the new iPhone Air, featuring aggressive design changes, including a horizontal matrix camera layout for the Pro series and a thickness of only 5.6mm for the iPhone Air [3][4]. - The pricing for the iPhone 17 starts at 5,999 yuan for the standard version, while the Pro and Pro Max versions start at 8,999 yuan and 9,999 yuan respectively, with a new 2TB version priced at 17,999 yuan [4]. Market Competition and Performance - In Q2 2025, the Chinese smartphone market saw a 4% year-on-year decline, with Apple ranking fifth in shipments at 10.1 million units, just above the "Others" category [1][5]. - Despite a 4% year-on-year revenue increase in Greater China to $15.37 billion, Apple's shipment volume fell by 1.3%, indicating a challenging market environment [5][6]. - From 2019 to 2024, Apple's market share in China grew from 15% to 24%, but it dropped to 19% in the first half of 2025, highlighting a significant decline [6]. Competitive Landscape - Huawei's resurgence has posed a direct threat to Apple, with its market share in the high-end segment increasing from 12% in 2022 to 29% in 2024, while Apple's share in the same segment decreased from 75% to 54% [7][9]. - The overall share of domestic brands in the high-end market reached 46% in 2024, up from 25% in 2022, indicating a rapid erosion of Apple's competitive advantage [9]. Strategic Responses - Apple is exploring new strategies to adapt to the competitive landscape in China, including engaging with the local content e-commerce ecosystem, reflecting the need for the company to innovate and respond to market pressures [9].