Apple Inc. experienced a 2% decline in its shares on Tuesday as influential technology analyst Ming-Chi Kuo expressed concerns about the company's projection of lower demand for iPhones in 2024. According to Kuo's recent supply chain survey, Apple has revised its estimated shipments of key semiconductor components for 2024 to approximately 200 million units, suggesting a potential 10% to 15% decline in shipments for the upcoming iPhone 15 and iPhone 16 models.

China poses a particular area of concern for Apple, as the company has witnessed a significant decrease in weekly shipments in the country. In recent weeks, these shipments have plummeted by 30% to 40% compared to the same period the previous year. Kuo predicts that this downward trend will persist. Apple has chosen not to comment on these developments.

The news had an immediate impact on Apple's stock price, sinking as low as $187.87 in New York. This marks the largest intraday drop in two weeks. Heading into Tuesday, Apple's stock remained relatively unchanged for the year 2024. Investors, eagerly awaiting the company's results for the holiday quarter, are hoping for signs that demand for Apple's flagship product, the iPhone, is holding up. The iPhone remains Apple's most profitable product.

Despite facing challenges in the Chinese market, including government restrictions on foreign technology in the workplace, the iPhone has continued to gain market share. In fact, according to market tracker IDC, the iPhone emerged as the top-selling smartphone in China for the first time last year.

Analysts estimate that Apple's overall revenue is expected to increase by only 1% in the fiscal first quarter, which covers the period through December. As the company prepares to announce its results for this quarter on Thursday, all eyes will be on whether Apple can maintain its growth trajectory, particularly amid concerns surrounding iPhone demand.

It remains to be seen how Apple will strategize to counteract potential dips in demand and reclaim its momentum in the smartphone market. As the tech giant juggles the challenges of global macroeconomic factors and local market dynamics, it faces the critical task of nurturing and sustaining its customer base while adapting to changing consumer preferences and new market forces.