Apple ($AAPL) China iPhone Demand Misrepresentation, Regulatory Risks Concealment, and Sales Guidance Collapse Case

Court: N.D. California

Case: 5:25-cv-05197

• AAPL investors filed a claim against Apple for misleading the market about iPhone demand and sales stability in China, overstating product strength, and concealing the impact of competitive pressures and regulatory challenges.
• Following a critical analyst downgrade and reports of deepening demand weakness, AAPL stock fell sharply, dropping 3.6% on September 6, 2023, and another 5% the next day, totaling an 8.6% loss in two days.
• AAPL investors can join this case to be notified about potential recovery.

Case Details:

Between November 3, 2022, and September 6, 2023, Apple repeatedly told investors that demand for its flagship iPhone remained strong, especially in Greater China, and that it continued to perform well despite broader macroeconomic uncertainties. Tim Cook emphasized Apple’s strength in China, asserting resilience and customer loyalty in the region.

In truth, Apple faced growing headwinds in China from local competition (notably Huawei’s resurgence), declining consumer demand, and increased government restrictions on foreign technology usage. Internal forecasts signaled weakening demand, particularly for the iPhone 14 and 15 lines.

On September 6, 2023, reports emerged that China had widened bans on iPhone use among government officials and agencies. This news raised concerns about deeper structural demand issues. The next day, reports surfaced about Huawei’s surprise launch of a new 5G phone, catching Apple off guard. Over these two days, AAPL fell 8.6%, losing over $200 billion in market cap.

Investors allege Apple misled the market by:

• It overstated iPhone demand and underplayed competitive risks in China.
• It concealed internal sales forecasts showing declining trends.
• It downplayed the material impact of regulatory restrictions on iPhone usage.

Investors argue that Apple’s public statements painted a misleading picture of the company’s China business, artificially inflating its stock price.