Huawei, one of Apple's main competitors in China, has been gaining ground with its in-house chips and HarmonyOS ecosystem. The company's recent resurgence in the high-end market has intensified the competitive landscape, making it harder for Apple to maintain its leadership position.

Apple's Vision Pro could also face more competition in the market as Huawei is reportedly gearing up to launch its own competing headset as soon as next week. The launch of Huawei's competing headset could further erode Apple's market share in China, making it even more crucial for the company to launch Apple Intelligence in the country.