Apple is reducing retail prices for its iPhones in China, reducing costs by up to 500 yuan ($70) as part of an unconventional discount program. The tech giant is responding to increased competition in the world’s largest smartphone market.
The price reduction, amounting to a 5% decrease on select iPhone models, was announced on Apple’s Chinese website on Monday. This move comes ahead of the Lunar New Year, and the time-limited offer, labeled a Lunar New Year event, is set to run from January 18 to January 21.
Sales of Apple’s latest iPhone 15 series have faced notable challenges in China compared to earlier versions, with domestic rivals like Xiaomi and Huawei Technologies offering compelling alternatives.
Reports suggest that some businesses and government agencies are limiting the use of Apple devices among employees, confirming similar security concerns that led to the United States government’s ban on Chinese apps.
Jefferies analysts reported a 30% decline in Chinese iPhone sales in the first week of 2024 compared to the same period the previous year, with a 3% decrease recorded for the entire year of 2023. Analysts expect intensified competition in the Chinese market throughout the year.
This unexpected move by Apple marks a departure from its traditional strategy of not lowering prices for its latest iPhone models. The price cuts follow the unexpected September launch of the iPhone 15 series, catching the market off guard.
Online retailers like Pinduoduo have already been discounting the iPhone 15 and iPhone 15 Pro by up to 16% since the beginning of the year. The discounts, according to Nicole Peng, senior vice president of market research firm Canalys, were anticipated given Apple’s aim to boost global sales, especially in China, amidst heightened competition and a growing reluctance among Apple enthusiasts to upgrade.
Canalys forecasts that Apple’s global sales will remain steady this year but may experience a modest decline in China. The unexpected price adjustments underscore Apple’s determination to maintain its foothold in a fiercely competitive Chinese market.
Despite these significant developments, Apple has not provided any official comment on the matter at the time of this report. The industry and consumers alike will be closely watching how these price cuts impact Apple’s position in China and whether they stimulate a resurgence in iPhone sales in the region.
