In response to growing competitive pressures in the world’s largest smartphone market, Apple has initiated rare discounts on its iPhones in China, reducing retail prices by up to 500 yuan ($70). The move comes as Apple faces challenges from domestic rivals like Huawei and Xiaomi, which offer competitive smartphone models in the Chinese market. The price cuts, ranging around 5%, are part of a time-limited promotion labeled as a Lunar New Year event, running from January 18 through January 21 in anticipation of the upcoming holiday in mid-February.
Sales of Apple’s latest iPhone 15 series have not performed as well as previous models in China. The company has been grappling with increased competition and limitations imposed by some companies and government departments, restricting the use of Apple devices among staff. Jefferies analysts reported a 30% drop in Chinese iPhone sales in the first week of 2024 compared to the same period a year earlier, following a 3% decline in sales throughout 2023. Analysts anticipate a more challenging competitive landscape for Apple in China throughout this year.
This move marks a departure from Apple’s usual strategy, as the company has not cut prices for its latest iPhones in several years. The decision to reduce prices follows Apple’s surprising choice not to raise prices for the iPhone 15 series during its September launch. Online shopping platforms, including Pinduoduo, have also been independently slashing prices for the iPhone 15 and iPhone 15 Pro by as much as 16% since the beginning of the year.
Nicole Peng, Senior Vice President of market research firm Canalys, noted that the discounts did not come as a surprise, given Apple’s global need to boost sales amid rising competition and the reluctance of Apple fans in China to upgrade. Canalys expects Apple’s sales to remain flat worldwide this year, with a slight decline anticipated in the Chinese market. Apple has not provided any official comment on the price reductions.
