Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Apple dropped out of the top five smartphone sellers in China for the first time in four years in the second quarter, with the iPhone losing ground to models from domestic handset makers including Huawei.While China’s smartphone shipments grew 8.9 per cent year over year to 71.6mn units — a third consecutive quarter of growth as the market recovers from a slump — Apple saw a 3.1 per cent decline, according to the International Data Corporation research group, citing preliminary data.But Apple still has a larger overall market share in China than it did in 2020, at 13.6 per cent today compared with 8.3 per cent in the third quarter of that year, IDC noted.Data published by rival research group Canalys also found local companies now make up the top five sellers in China. Xiaomi entered the top five as Apple’s market share fell by 2 percentage points, despite its discounting of iPhone models during the quarter. Canalys said Xiaomi’s smartphone sales benefited from marketing buzz around the launch of its first electric car, the SU7. Vivo, Oppo and Honor are the other Chinese brands in the top five.Concerns about intensifying competition and a government crackdown on iPhones in China have been a persistent issue for Apple in recent months, offsetting positive signs such as sustained double-digit growth in its services business, which includes the App Store, Apple Pay and Apple TV+.Huawei launched its flagship Mate 60 smartphone series in September last year.“This year the slump of Apple [in the first half of 2024] goes beyond just seasonality but is directly a result of increased competition from Huawei, the only other major player in the premium segment outside of Apple,” IDC research director Nabila Popal told the Financial Times.But Apple’s year-on-year decline in China has “slightly improved” compared with the first quarter, according to the research. “Huawei’s threat may lose steam if they don’t introduce AI features soon — as these are expected to become staple elements of premium devices,” Popal added.Apple will report earnings for the quarter to the end of June next Thursday, with investors watching for signs of a surge in global iPhone sales. Chief executive Tim Cook has been increasingly bullish in public about the potential for artificial intelligence to boost sales into 2025.Bank of America analysts this month reiterated their “buy” rating on Apple, saying they expected a strong multiyear refresh cycle for the iPhone driven by a large base of users working with older models who will be drawn in by new AI features.Apple unveiled “Apple Intelligence” at its annual developer conference in June. The suite of AI features will power a more intelligent Siri assistant and offer new tools such as photo editing features, custom emoji generation and writing aids.A partnership with OpenAI will also give Apple users free access to ChatGPT, allowing them to take advantage of its larger AI models. The new iPhone 16 is expected to be announced in September.After a bumpy start, Apple shares are up 17 per cent since the beginning of 2024, and the company has reclaimed its position as the most valuable US-listed company from Microsoft and Nvidia.
