Apple offers discounts on iPhone 15 in China amid rising competition
Apple has initiated rare discounts on its iPhones in China, reducing retail prices by up to 500 yuan ($70) in response to escalating competition in the world’s largest smartphone market.
The U.S. tech giant announced a 5% price reduction on select iPhone models on its Chinese website. This limited-time offer, part of a Lunar New Year promotion, runs from January 18 to January 21, leading up to the mid-February holiday.
Sales for Apple's latest iPhone 15 series in China have significantly lagged behind previous models. Domestic competitors like Huawei Technologies and Xiaomi have introduced strong alternative models. Moreover, some companies and government departments in China reportedly limit the use of Apple devices, reflecting similar U.S. restrictions on Chinese apps for security reasons.
Jefferies analysts reported a 30% drop in Chinese iPhone sales in the first week of 2024 compared to the same period last year, following a 3% decrease throughout 2023. The market is expected to become even more competitive.
This price reduction marks the first such cut for Apple's latest iPhone models in years. The move follows Apple's unexpected decision not to increase the iPhone 15 series' prices at its September launch.
E-commerce platforms, including Pinduoduo, have been offering reductions of up to 16% on the iPhone 15 and iPhone 15 Pro since the start of the year.
Nicole Peng, senior vice president at market research firm Canalys, wasn't surprised by the discounts. She notes that Apple faces pressure to boost global sales, particularly in China, due to intensifying competition and Apple fans' hesitation to upgrade.
Peng mentioned, "Huawei is making a comeback. Some Chinese consumers may switch back to Huawei, driven by patriotism."
Canalys predicts Apple's sales will remain stagnant globally and experience a slight decline in China this year.
