Apple is expected to face significant challenges in 2025, according to multiple analysts, including Ming-Chi Kuo. Key concerns include declining iPhone shipments, particularly in the Chinese market, where shipments dropped by 10-12% in December 2024. Kuo predicts iPhone shipments in 2025 could fall 8-10% below market expectations. The introduction of Apple Intelligence, the company’s on-device AI platform, has not driven hardware upgrades or increased services revenue, with its appeal waning compared to cloud-based AI services like ChatGPT. Structural challenges, delays in rolling out Apple Intelligence features, and its limited availability in languages other than English have further dampened its effectiveness. Analysts also highlight stagnant iPhone growth, competition from high-end Android devices, and broader market risks from earlier overly optimistic sentiment. Additionally, eSIM-only models may face challenges in China, where the technology is not widely supported. Apple's cautious stance on 2025 production plans, its reliance on the Chinese market, and the potential impact of the iPhone SE4 launch remain key risks. Apple's stock has already slid 2.4% in early 2025.