Apple has recently initiated limited-time discounts on its iPhone models in China, reducing retail prices by up to 500 yuan ($70) in response to heightened competition in the world’s largest smartphone market.
The U.S. technology giant said they will be giving a 5% price reduction on selected iPhone models, according to its Chinese website on Monday. This promotion, named the Lunar New Year event, will be available from January 18 to January 21, leading up to the holiday in mid-February.
The sales performance of Apple’s latest iPhone 15 series in China has faced challenges compared to its predecessors. Local competitors like Huawei Technologies and Xiaomi are offering compelling alternatives, and reports suggest that certain companies and government entities are limiting the use of Apple devices among their staff, reflecting similar restrictions imposed by the U.S. government on Chinese apps due to security concerns.
Jefferies analysts noted a 30% decline in Chinese iPhone sales during the first week of 2024 compared to the same period in the previous year. Sales had already dropped by 3% throughout 2023, and industry analysts anticipate a more challenging time for Apple in the coming year.
Apple in an unusual move, which traditionally refrains from reducing iPhone prices, is responding to the market shift with rare discounts on iPhones. This decision follows the surprise announcement at the September launch, where Apple chose not to increase prices for the iPhone 15 series.
Online retail platforms, including Pinduoduo, have independently lowered 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 the market research firm Canalys, expressed that the discounted prices were anticipated, given Apple’s global sales pressure, particularly in China, where competition is intensifying, and consumers are becoming more hesitant to upgrade their devices. She added, “It is clear that Huawei is making a comeback,” suggesting that some Chinese consumers may revert to Huawei driven by patriotic sentiments.