In an unexpected move, Apple has decided to offer temporary discounts on its iPhones and other products in China, signaling a rare departure from its usual sales strategy. This decision comes at a time when competition in Asia’s smartphone market is reaching new heights.
Timed with the Lunar New Year event, Apple’s official Chinese website is featuring discounts of up to 500 RMB ($70) on the latest iPhone lineup. Additionally, flagship Apple products like the Mac and iPad are included in the promotion, with discounts of up to 800 RMB ($112) and 400 RMB ($56), respectively. The promotion is scheduled to run from January 18 through January 21.
Apple’s inclination to avoid direct discounts is well-known, as the company typically relies on a premium brand image to attract high-end buyers. While third-party sellers occasionally offer discounted Apple products, the company itself rarely engages in such promotions.
This price reduction strategy coincides with the release of Huawei’s latest smartphone, the Mate 60 Pro, just over five months ago. The Mate 60 Pro has enjoyed significant popularity among Chinese consumers, drawing attention to its use of an advanced chip, which has sparked scrutiny from US officials
Notably, around the time of Huawei’s flagship smartphone release, reports emerged from the Wall Street Journal suggesting that China had prohibited the use of iPhones by central government officials. However, a spokesperson for the Chinese government later denied the existence of any laws or rules banning the use of iPhones.
These new iPhone discounts in China are prompting questions about the recent demand for Apple products in the world’s second-largest economy. China has been a pivotal market for Apple, contributing approximately one-fifth of the company’s global sales last year.
According to Counterpoint Research, sales for the iPhone 15 experienced a 4.5% decline in China compared to iPhone 14 sales in the first two weeks after its September launch. Further adding to concerns, Jefferies Research reported a substantial 30% decrease in iPhone sales during the first week of the year, as per Reuters.
China holds a significant position as one of Apple’s most crucial markets, ranking second in sales globally, behind only the North American market. However, the challenges faced by China’s economy over the past year have impacted Apple’s overall growth. Last week, Apple relinquished its position as the stock market’s most valuable company, yielding the top spot to Microsoft. This shift underscores the broader challenges faced by Apple in maintaining its dominance amidst evolving market dynamics and economic uncertainties in China.
