Apple, the US tech giant, is taking rare measures to combat growing competitive pressure in the largest smartphone market in the world by offering discounts on its iPhone models in China. With the aim of boosting sales, the company has cut retail prices by as much as CNY 500 ($70, or roughly Rs. 5,800). These price reductions seem to be a response to the declining sales of Apple’s latest iPhone 15 series in China, where home-grown rivals like Huawei Technologies and Xiaomi offer competitive alternatives.
To coincide with the upcoming Lunar New Year, Apple has launched a time-limited promotion, slashing prices on selected iPhone models by 5 percent. The promotion will run from January 18 to January 21, creating an opportunity for Chinese consumers to purchase iPhones at a more affordable price before the holiday season begins in mid-February. Despite being a market leader, Apple has been facing hurdles in the Chinese market due to stiff competition and government restrictions on the use of Apple devices.
Sales of Apple’s latest iPhone 15 series have been notably worse than their predecessor models in China. Jefferies analysts revealed that Chinese iPhone sales dropped by 30 percent during the first week of 2024 when compared to the same period in the previous year. Overall, iPhone sales in China fell by 3 percent in 2023. This decline can be attributed to the increasing popularity of domestic smartphone brands like Huawei and Xiaomi, which offer comparable features and more competitive pricing.
Analysts predict that the competitive landscape will continue to intensify for Apple within China. The market research firm Canalys suggests that Apple’s sales worldwide may remain flat this year and even experience a slight decline in China. Home-grown brands like Huawei have witnessed significant growth and are making a strong comeback, with some Chinese consumers choosing these brands out of patriotism. Additionally, some companies and government departments have been limiting the use of Apple devices, echoing the US government’s concerns about Chinese apps on security grounds.
The decision to reduce iPhone prices in China comes as a surprise because Apple has not lowered prices for its latest models in years. At the September launch of the iPhone 15 series, Apple resisted raising prices, which left industry experts speculating about the company’s strategy. However, online shopping platforms, including Pinduoduo, have been independently offering discounts of up to 16 percent on the iPhone 15 and iPhone 15 Pro since the beginning of the year.
In an effort to boost sales and combat fierce competition within China, Apple is providing rare discounts on iPhone models. By cutting prices by as much as 5 percent, the US tech giant hopes to entice Chinese consumers and regain market share in the world’s largest smartphone market. However, Apple’s ability to overcome the challenges it faces in China remains uncertain, especially with the growing popularity of domestic brands and the restrictions imposed by some companies and government departments.
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