Ming-Chi Kuo, known as the 'most insightful Apple analyst,' pointed out in his analysis that if Apple Inc. does not adjust its iPhone product and sales strategy, it may face a mid-single-digit decline in iPhone revenue by 2026. This prediction is mainly based on the following observations:

- **Stagnant iPhone shipment growth**: Ming-Chi Kuo mentioned in multiple reports that Apple's iPhone shipment growth has plateaued, especially in the Chinese market, where Apple's market share continues to decline. This means Apple needs to stimulate demand through innovation or strategic adjustments.

- **Limited contribution from Apple Intelligence**: Although Apple introduced Apple Intelligence features aimed at enhancing user experience and product appeal through AI, Ming-Chi Kuo believes these features will have limited impact on boosting iPhone sales in the short term. True AI performance may require hardware upgrades in 2026 or later.

- **Limitations of the high-end model strategy**: Apple has been increasing revenue by launching high-end Pro series, but this strategy has its limits. Ming-Chi Kuo predicts that if Apple does not adjust its product lineup and pricing strategy, relying solely on high-end models for revenue growth will become unsustainable.

- **Market maturity**: The smartphone market, especially the high-end segment, has become saturated, with consumers replacing devices less frequently. Apple needs to find new market growth points or rely on services to offset the slowdown in hardware sales.

Ming-Chi Kuo's prediction serves as a reminder for Apple to make more proactive adjustments in product innovation, market strategy, and user experience to maintain its competitiveness in the global smartphone market. Specific strategic adjustments may include:

- **Innovative product features**: Introducing more differentiated and attractive features.

- **Pricing strategy**: Possibly considering a broader price range to cover consumers with different economic levels.

- **Market expansion**: Further exploring emerging markets or finding new growth points in mature markets.

- **Service ecosystem**: Increasing reliance on and development of Apple's service business to balance fluctuations in hardware sales.

These insights come from multiple analysis reports released by Ming-Chi Kuo at TF Securities, showcasing his deep understanding of Apple's products and market dynamics.