In contrast, Apple's integration of AI features, such as OpenAI's ChatGPT, has faced limitations in China due to regulatory restrictions.

The demand for AI features among younger consumers is a significant factor contributing to Apple's struggles in the Chinese market.

Apple is currently offering discounts of up to 500 yuan (approximately $68.50) on its latest iPhone models in China, a move aimed at boosting sales amid economic challenges.

These discounts come at a time when consumer spending in China is cautious due to a slowing economy, which has seen consumer inflation reach a five-month low.

This initiative reflects a broader effort by Apple to maintain its market share and drive sales during a period of economic uncertainty.

Despite these efforts, Apple was recently not included in the list of the top five smartphone sellers in China, raising concerns among shareholders about its competitive position.

Huawei's recent success is notable, with a 24% year-on-year increase in smartphone shipments, boosting its market share from 13% to 16%.

The company has been losing market share to local brands like Huawei, which has negatively impacted its financial performance, including a reported 3% decline in revenue in China year-over-year.

The competition is further intensified by Huawei's launch of new devices featuring advanced chips, previously thought difficult to produce due to U.S. sanctions.

Despite these challenges, Apple reported a revenue of $119.6 billion for Q1 2024, indicating its ability to meet market expectations.

Looking ahead, Apple is expected to announce its earnings results for the holiday quarter in early February 2025, which will provide insights into the performance of the iPhone 16.

The current promotion is available both online and in retail stores, but supplies are limited, creating a sense of urgency among potential buyers.