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Apple can reignite demand for the iPhone by cutting prices, introducing a much cheaper model, or persuading carriers like China Telecom to restart their subsidy programs, added Mawston.

As Amazon continues to enjoy leadership status in public cloud and a big client base of small and medium-sized enterprises, thanks to its relatively low price in public cloud, IBM has a reputation of winning big contracts with governments and big corporations worldwide.

Apple and Google banned developers from using GPS data, which shows someone's location. It also won't allow any government to store data about a person or use the technology without a person's knowledge or consent. Any data collected can't be used for advertising.

As Liu concluded in the letter, Shanghai has already grown into an important driver of China's economic development. The city is striving to be a new hub of financial opening-up by exploring integration among finance, technology and industries, he said.

Apple is finally getting serious about video games in the living room.