Apple is grappling with a sudden market cap loss of $200 billion, signaling potential trouble ahead. Investor concerns are casting doubts on the upcoming phone’s success and raising questions about the broader landscape of US tech dominance.

China has long been a key market for Apple, responsible for nearly a fifth of its $394.3 billion net sales in the last fiscal year. Apple CEO Tim Cook visited Chinese officials in March to mend relations, but unforeseen developments have rocked the tech giant’s boat.

Apple’s main competitor in China, Huawei, has unveiled its latest offering, the Mate 60 Pro, which has surprised observers. Despite Western chip sanctions targeting Huawei’s phone business, the Mate 60 Pro boasts mostly domestically sourced components, shunning Western suppliers.

Local parts

In a notable departure from tradition, the phone features a 7-nanometer processor from China’s Semiconductor Manufacturing International Corporation and other locally acquired parts. This shift is a clear message to both Chinese consumers and Western lawmakers that Chinese manufacturers can provide homegrown technology.

Analysts at Jefferies warn that these developments could jeopardize new iPhone sales in China, estimating that the Mate 60 Pro could capture up to 38% of the Chinese market. This significant valuation hit may be indicative of a shifting global tech landscape, with China increasingly achieving technological independence.