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Apple has appointed John Ternus as its new chief executive, with the decision coming as the company faces mounting headwinds in China—where competition is intense, sales have been slipping, and pressure from Huawei persists amid ongoing US-China tensions.
Analysts say the rising difficulties in China will be a major test for Ternus, including whether he can connect with Chinese consumers in a way that Tim Cook did. Bryan Ma, vice president of device research at IDC, said the focus is on whether the new leadership can win over the market.
“I want to see whether the new CEO can win over Chinese consumers the way Tim Cook did,” said Bryan Ma, vice president of device research at IDC.
Ternus will succeed Tim Cook as CEO at a time when Apple’s China operations face significant challenges. China is Apple’s third-largest market.
Last year, total revenue in Mainland China, Hong Kong and Taiwan declined 4% to $64.4 billion, following an 8% drop in the prior year.
Competitive pressure from Chinese smartphone makers is intensifying, particularly as domestic brands increasingly embed strong AI features. Apple Intelligence, meanwhile, has not met expectations, according to the article.
Nicole Peng, vice president of consumer research at Omdia, said the Chinese smartphone market has developed into its own ecosystem.
“For China, the issue is no longer just hardware tailored to each region; it is now a comprehensive, competitive environment,” Peng said.
Apple also faces strong headwinds from Huawei Technologies, especially in the premium segment. Ma said Huawei has introduced high-end devices, including foldable smartphones, where Apple is expected to respond with a foldable model rumored to launch later this year.
“Huawei has rolled out some genuinely strong high-end devices, especially foldable smartphones, and that's where Apple needs to respond with a foldable model rumored to launch later this year,” Ma noted.
Counterpoint Research data cited in the article shows that in Q1 2026, Huawei led the Chinese smartphone market with the largest share in five years.
Despite the broader challenges, Apple showed positive signals in China. The article states that iPhone shipments in China rose 20% in the quarter, supported by steady demand for the iPhone 17 and by pricing programs and subsidies.
Peng argued that one of the most important tasks for the incoming CEO is to maintain a direct relationship with Chinese consumers—an approach Cook built over many years. The article notes that Cook visited Chengdu, appeared at an Apple Store, and interacted with customers and celebrities. It also says he met officials in Beijing and customers in Shanghai.
Since Cook’s October 2025 trip, the article reports that the Air model sold out within minutes in China.
Ma also suggested Cook will continue to play a vital role in Apple’s external relations as he transitions into his new role.
US-China tensions continue to complicate Apple’s operations. The article notes that most Apple devices are still manufactured in China, despite tariff policies and efforts to reshore production to the United States.
Ivan Lam said Apple has accelerated supply-chain diversification, with most iPhones sold in the U.S. now manufactured in India. Ma added that while diversification has helped, matching China’s efficiency and know-how remains difficult.
“I think Apple, like many competitors, has done well in establishing diversified supply chains,” Ma said. “But ultimately it's very hard to match the efficiency and know‑how that China currently offers. Therefore, I expect Apple to remain dependent on China for its supply chain in the years ahead.”
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