Apple Shares Tumble 4% Amid Huawei's Market Surge and China's Smartphone Shakeup

Recently, Apple's shares dropped by 4.04%, reaching their lowest point since November 2024. This decline comes amid significant challenges in China's smartphone market, where Apple has seen a 25% decrease in shipments during the fourth quarter, according to Canalys. In contrast, Huawei's market share in China surged by 24%, highlighting a reshuffling in the competitive landscape — a reversal of the once-common belief that "when Huawei falters, Apple thrives."

The shifting dynamics are not only due to competitors' efforts but also signal increased pressure on Apple's iPhone business. As local smartphone manufacturers aggressively enhance their offerings, such as improved battery capacity and advanced camera technologies, Apple faces hurdles in maintaining its market position without embracing innovative strategies.

In a bid to stay competitive, Apple reportedly secured a patent for a Face ID feature embedded under the display, marking a breakthrough in screen technology. This patent addresses critical issues related to the transmission of infrared light, essential for facial recognition, through an OLED screen by removing certain subpixels.

This innovation is significant as Face ID has been a hallmark of the iPhone's security and efficiency since its introduction with the iPhone X. However, its implementation required design compromises, such as the infamous notch and later the Dynamic Island. The new under-display solution could potentially lead to a more seamless display aesthetic, ushering in a new era of iPhone design.

There is speculation that this under-display Face ID might debut with the iPhone 18 series, although current reports suggest these models will feature a punch-hole design rather than a full under-display camera system. Meanwhile, the iPhone SE4 and iPhone 17 series are anticipated to be Apple's main focus in the nearer term, with features like comprehensive 5G capabilities and high refresh rate displays poised to draw consumer attention.

As Apple navigates through its product roadmap, the successful implementation of under-display Face ID technology represents a potential pivotal moment that could enhance its competitive edge and customer appeal in a rapidly evolving tech environment. The coming months will reveal how these innovations will impact Apple's market strategy and consumer reception.