Apple Inc (AAPL  ) is nearing the launch of a budget smartphone by 2025 to regain market share lost to Huawei Technologies Co and Xiaomi Corp (XIACY  ).

Apple iPhone's market share in China slipped to 14%, down from third to sixth place in the second quarter. Huawei bagged the fourth position, and Xiaomi came fifth.

Vivo emerged as the number one brand, OPPO remained second, and HONOR came third in China. Canalys attributed the local brands' success to the early discounts and promotions, integration of generative artificial intelligence, and their collaboration with regional supply chains.

Apple is nearing production of an updated iPhone SE dubbed V59 that will become its new entry-level model, Bloomberg cites familiar sources.

Reportedly, Apple will transition to an edge-to-edge screen, removing the old home button design. The new SE phone will likely support Apple Intelligence.

Needham analyst Laura Martin expects 89%- 96% of Apple's 2025 revenue to depend on iPhone sales, underscoring the importance of Apple's smartphone strategy.

Apple is also considering iPad upgrades. The company's new iPad Air models, dubbed J607 and J637, will likely launch in 2025. A new iPad mini, dubbed J410, will be available by the end of 2024.

Apple's updated models include a revamped Mac mini, updated MacBook Pros, and iMacs with the M4 processor and Apple Intelligence features.

However, Barclays analyst Tim Long flagged a potential 3 million iPhone unit cut for the December quarter due to demand weakness.

Apple stock is up over 30% in the last 12 months. Investors can gain exposure to the stock through iShares Global Tech ETF (NYS:E IXN) and Vanguard Information Tech ETF (VGT  ).

Price Action: AAPL stock is down 0.23% at $225.69 at the last check on Wednesday.