Apple suffered its worst day since August, falling 11% from its December peak

an apple the stock closed down 4% on Thursday, its worst day since Aug. 5, after several reports of lackluster iPhone sales in China.

Shares of the iPhone maker are down nearly 12% from their most recent peak in December, the worst performance of the seven largest tech stocks in 2025.

This follows a report by market research firm Canalys on Thursday that said Apple would drop to third place in terms of smartphone sales in China in 2024, behind home makers Vivo and Huawei.

According to the report, Apple supplied 15% of the 284 million phones sold in China last year, but that was down 17% year-on-year. Meanwhile, Vivo and Huawei recorded strong growth.

TSMC, a key supplier to Apple, on Thursday reported a forecast for first-quarter smartphone sales that indicated a sequential drop of nearly 6%. TSMC, which makes the chips that underlie Apple’s devices, attributed the drop to seasonality. TSMC said artificial intelligence chips accounted for more than half of its revenue in the fourth quarter, displacing smartphones as its biggest business.

Renowned Apple supply chain analyst Ming-Chi Kuo on Monday wrote that it expects iPhone shipments to decline 6% year-on-year in the first half of 2025, with a larger decline in the second quarter. Kuo wrote that he believes that Apple Intelligence, the company’s artificial intelligence system, which is not yet available in China, is not driving demand for the iPhone.

“There is no evidence of Apple Intelligence’s ability to benefit hardware replacement cycles or the service business,” Kuo wrote.

On January 30, Apple reports the results for the December quarter.

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