According to a report by Counterpoint Research, Apple’s iPhone shipments in China fell by a staggering 28% year-over-year in the first quarter of 2023. This decline comes as the broader tech sector faces challenges, with the Nasdaq composite index tumbling over 30% in 2022. The report suggests that the rise of AI-powered shopping experiences, which allow users to virtually try on products like clothes and makeup, may be contributing to the shift away from traditional smartphone usage. Additionally, the report notes that Chinese consumers are increasingly favoring domestic brands like Vivo, Oppo, and Honor over Apple’s iPhones. As AI shopping gains momentum, it could further disrupt the smartphone market and pose challenges for tech giants like Apple that have historically relied on hardware sales.