Apple Inc. (NASDAQ: AAPL) is set to face weaker iPhone sales in December as demand in China, one of its largest markets, continues to decline. UBS analysts have lowered their iPhone unit and revenue estimates for the December quarter, reflecting ongoing challenges in the Chinese market and global sales.
UBS Revises iPhone Sales and Earnings Forecast
UBS reduced its estimates for iPhone sales:

iPhone units: Revised to 74 million from 77 million.
iPhone revenue: Adjusted to $67.2 million, down from $69.7 million.
Earnings per share (EPS): Cut to $2.25 from $2.31, lower than the consensus of $2.36.

The December quarter revenue estimate was revised down by 2% to $120.8 billion, below Wall Street expectations of $124.9 billion.
For detailed financial analysis, consult the Balance Sheet Statements API.
China’s Role in Declining iPhone Sales
Data from Counterpoint Research highlighted that iPhone sell-through dropped 8% year-on-year in November to 20.7 million units, with China accounting for most of this decline. Apple’s global market share also fell to 20.1%, the lowest since November 2019.
While China’s regulatory hurdles prevent the rollout of Apple’s AI features, competition from Huawei and Xiaomi further intensifies the challenges. Learn more about market movements via the Sector P/E Ratio API.
Resilience in Apple’s Services Revenue
Despite falling device sales, Apple’s services revenue remains strong, supported by robust AppStore and software sales. This resilience is expected to cushion the company’s overall earnings decline. For insights into revenue segmentation, explore the Revenue Product Segmentation API.

Key Takeaway
Apple’s December quarter is shaping up to be challenging, driven by weakening iPhone demand, particularly in China. However, the company’s strong services segment could help offset some of these declines, highlighting the need for diversification in revenue streams.