Apple ( NASDAQ:AAPL ) is taking some serious punches in China. While it held the top spot in Q4 2024 with 13.1 million iPhones shipped, its numbers cratered 25% year over year. Meanwhile, Huawei is on fireposting a jaw-dropping 37% growth in shipments for the year. The broader Chinese smartphone market is back in the green, up 4% in 2024, but Apple is slipping as local players like Xiaomi and OPPO ride a wave of aggressive pricing, foldable innovations, and AI-driven ecosystems. The Chinese government's latest subsidy push could fuel even more competition in 2025, making Apple's fight even tougher.

But the turbulence doesn't stop in China. Apple is scrambling to find a new credit card partner, with Barclays ( NYSE:BCS ) and Synchrony Financial ( NYSE:SYF ) in talks to take over from Goldman Sachs ( NYSE:GS ). Goldman, once eager to expand into consumer banking, is now pulling back, potentially leaving Apple in transition limbo. A shake-up in its credit card business could ripple into customer spending habitssomething Apple can't afford to mess up as it faces pressure on multiple fronts.

Despite all this, Apple still wears the crown as the world's most valuable company, with a market cap north of $3.5 trillion. But investors are watching closely. Analysts warn that 2025 iPhone shipments could fall 10% below expectations, Trump's potential tariffs could add more uncertainty, and Apple's AI playdubbed Apple Intelligencehas been met with a lukewarm response. Even its hyped Vision Pro headset has barely made a dent in revenue. Sure, Apple has a fortress-like ecosystem and die-hard customer loyalty, but with mounting competition, weak product traction, and strategic pivots underway, the real question is: Can Apple still dominate, or is the empire starting to crack?

This article first appeared on GuruFocus .