Apple Inc (NASDAQ:AAPL) faces a significant challenge in China's smartphone market with iPhone shipments declining by -33% year-on-year and -56% month-on-month in February, far exceeding typical seasonal patterns. JPMorgan analyst Samik Chatterjee attributes the decline to market digestion and inventory adjustments rather than a fundamental shift in market dynamics or loss of market share, maintaining an Overweight rating on AAPL stock. Despite the downturn, Apple's resilience and history of innovation are highlighted as key factors that could help it navigate the current market turbulence.