Recently, Apple has found itself in a troubling predicament, facing a dual crisis of plummeting financial performance and its stock price along with a surge of lawsuits and criticismsOn January 13, 2025, a significant collective lawsuit against Apple commenced in the United Kingdom, marking the first trial in a series of antitrust lawsuits directed at major tech companiesApple stands accused of charging "excessive and unfair" fees for software distributed through its App Store, leading to potential claims of up to £1.5 billion (approximately ¥133 billion).

In a recent podcast interview, Meta's CEO Mark Zuckerberg openly criticized Apple for its "lack of innovation" and alleged exploitation of others' interestsHe suggested that the declining sales of iPhones result from the fact that "the new phones have not shown significant improvements compared to previous versions." Zuckerberg's criticism extended to the so-called "Apple tax" and restrictions on third-party accessories. "Their approach fundamentally amounts to exploitation," he stated.

Additionally, recent financial reports indicate that in the fourth fiscal quarter of 2024, while Apple saw a 6% increase in revenue, its net profit plummeted by 36%. Since reaching an all-time high of $260 per share on December 26, 2024, shares have steadily declined, losing nearly 10% of their valueAn industry analyst remarked, "The decline in mobile hardware revenue, and the increasing scrutiny of the 30% Apple tax, are symptomatic of Apple's waning innovation and competitiveness."

The criticisms of the so-called "Apple tax" have escalated significantlyLast year, concerns were raised regarding Apple's monopolistic practices, asserting that the company abused its market dominance by imposing a strict 30% commission on purchases made within its App StoreThe plaintiffs argue that Apple's practices essentially forced developers creating software for devices like the iPhone and iPad to use the company’s own store, thereby solidifying its monopolistic grip on the market.

In this lawsuit, the plaintiffs are demanding £1.5 billion in damages, claiming that the exorbitant fees charged to developers are ultimately passed on to consumers

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In response to these allegations, Apple has stated that the lawsuit is "baseless" and maintains that its commission structure aligns with the standards in the digital marketplaceThe company emphasized that most applications are available for free, and most developers qualify for a reduced 15% commission designed for small businesses.

According to the technology analyst, "This commission model mirrors industry standards worldwideThe accusations of monopolizing the App Store stem largely from Apple's control within its closed iOS ecosystem, where it dictates termsComparatively, fees related to Android platforms are significantly lower, reinforcing the perception that Apple's 30% rate is too high." Notably, regulatory bodies in the EU, South Korea, Netherlands, and Russia have imposed penalties on Apple in the past for similar violationsCountries like Germany, Japan, India, and Italy have also launched antitrust inquiries into Apple's practices.

Mark Zuckerberg remarked that Apple is essentially "masking the realities of declining hardware sales" by exploiting developers through the imposition of the 30% feeThe growing discontent over this substantial commission has prompted analysts to predict that Apple will have to adapt sooner or later; otherwise, they may face even heftier finesThis indicates that the era of easy profits for Apple could soon reach its conclusion.

In conjunction with the scrutiny of its service revenues, Apple's hardware sales, including phones and computers, are beginning to falterRecent predictions by renowned analyst Ming-Chi Kuo suggest that iPhone shipments might range between 220 to 225 million units in 2025, a noticeable drop from market expectations of 240 million or moreThis forecast has sparked concerns among industry indicators about Apple's future market performance, particularly as sales of the iPhone continue to underperform.

Data from Canalys revealed that during the third quarter of 2024, Apple shipped only 10 million units in the Chinese market, capturing a market share of 14%, marking a year-on-year drop of 6% and placing Apple fifth behind domestic competitors such as vivo, Huawei, and Xiaomi

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Furthermore, during the second quarter of 2024, Apple surprisingly fell out of the top five rankings for the first time.

Reports from Counterpoint indicated that during the "Double Eleven" shopping festival from October 18 to November 10, 2024, iPhone sales in China experienced a double-digit decline year on yearBy December 2024, smartphone shipments in China remained approximately stable compared to the same period in 2023, yet iPhone figures fell between 10% to 12%, indicating a continued shrinking market share for Apple's flagship product.

Senior Research Analyst Ivan Lam from Counterpoint Research noted that the resurgence of high-end Huawei devices has directly impacted Apple's performance in the Chinese marketAdditionally, domestic brands have introduced new models with significantly enhanced hardware specifications and software capabilities, particularly in smart AI features.

Faced with fierce competition in China and evident losses in market share, Apple CEO Tim Cook has also felt the pressureHe has consistently emphasized the importance of China within Apple's global strategy and even attended the grand opening of a new store in Shanghai, conducting the ribbon-cutting himself.

Another critical backdrop to the decline in hardware revenue and market shares for Apple is its recent departure from its old motto of "no discounts, no promotions." Since the beginning of 2025, Apple has implemented rare price cuts on new models, marking its second official promotional event following the release of the iPhone 16 series, with discounts reaching an unprecedented 800 yuan across all products.

Kuo asserts that the fundamental reason behind the sharp drop in sales is rooted in a "lack of innovation." He points out that while the iPhone 16 series features slight improvements over its predecessor, it falls short in delivering key AI functionalities that consumers anticipate, leaving the new models seemingly unremarkable and unable to capture buyers' interest in China.

"The evident sales decline, even in light of discount promotions, reflects the dwindling perception of Apple's product capabilities and innovation," said the aforementioned technology analyst

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When the aura of innovation dims and products stop leading the market, consumers will reflect that sentiment with their purchasing decisions.

Zuckerberg directly expressed concerns about Apple's innovation trajectory: "They have not truly invented anything remarkable for a long timeIt's as if after Steve Jobs introduced the iPhone, they simply rested on their laurels for 20 years." In the face of mounting external criticisms, Apple appears to be preparing to roll out some major initiativesOn January 13, 2025, Bloomberg journalist Mark Gurman disclosed Apple's product strategy for the yearHe noted that 2025 will be a year of expansive product updates, including a comprehensive redesign of the iPhone for the first time in five yearsMoreover, Apple intends to upgrade long-neglected products such as the iPhone SE, Apple TV, HomePod, and Mac Pro while also introducing an entirely new category of devices.

Beyond product refreshes, Apple is also planning to expand its offline store network and continue to deepen its penetration into the Chinese marketReports indicate that a new store in Hefei, China, will open on January 18, 2025, with further locations expected in Shanghai and Beijing within the same yearRecords show that Apple Technology Development (Shanghai) Co., Ltd. was established on January 10, 2025, with a registered capital of $35 millionIndustry insiders speculate that this new entity could facilitate a rapid rollout of Apple's AI services within China.

However, skepticism about Apple's ability to revive its sales performance through these new initiatives remains prevalentSupply chain investigations suggest that global iPhone sales are projected to reach 225 million units in 2025, a slight increase from the 220 million predicted for 2024 but still short of the market's high expectations of 240 millionDiscussions with key suppliers about the 2025 iPhone production planning have generally been characterized by caution.

"Chinese brands are aggressively implementing premium branding strategies and posing a serious threat in the high-end market

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