Tech giant Apple could be hit hard if Donald Trump decides to unleash trade tariffs on China after the firm revealed a shock drop in iPhone sales in the Chinese market. Apple reported its total revenue from the Far Eastern nation registered £14.3 billion for the last financial year, an 11% decrease from the previous year.

Apple's iPhone sales in China reportedly took a tumble at the end of 2024, with a considerable reduction in sales putting it in a dead heat with homegrown Xiaomi.

iPhone sales of $69.1 billion were, however, down slightly and below forecasts of about $71 billion. Revenue for the China region, where Apple has come under increasing competitive pressure from local smartphone makers such as Huawei and Xiaomi, dropped about 11 per cent to $18.5 billion.

Apple got hit with downgrades from Jefferies and Loop Capital on fears of slowing iPhone sales and a lack of demand around Apple Intelligence.

Apple reported fiscal first-quarter earnings Thursday. Analysts are focused on iPhone momentum following a sluggish start to the year for Apple's stock.

Apple reported $18.5 billion in sales in greater China last quarter, comfortably below consensus estimates of $20.9 billion.

Apple’s shares jumped in after-market trading on Thursday after the company reported a decline in iPhone sales and a double-digit drop in its China market revenue in the last quarter. The Californian-based company earned more than $69.

Apple struggles with iPhone sales in China and rising competition. See why AAPL stock may be at risk amid a stagnant market and ongoing DoJ lawsuit.