 in response to increasing competition in the world's largest smartphone market){kind=link}
Apple is slashing prices on its iPhones in China, reducing retail prices by up to 500 yuan ($70) in response to increasing competition in the world’s largest smartphone market. The U.S. tech giant announced a 5% price cut for some iPhones on its Chinese website, part of a limited-time Lunar New Year promotion from Jan. 18 to Jan. 21, leading up to mid-February.
China has seen difficulties with the sales of Apple’s most recent iPhone 15 series due to the availability of competing models from regional rivals like Xiaomi and Huawei Technologies. Furthermore, it has been reported that certain government agencies and businesses are restricting the use of Apple products, mirroring the United States government’s ban on Chinese apps due to security concerns.
After declining by 3% in 2023, Jefferies analysts saw a 30% reduction in Chinese iPhone sales in the first week of 2024 compared to the same period the year before. This year, the competitive scene is predicted to get even more intense, which will pose issues for Apple.
This price cut signals a departure from Apple’s customary approach of retaining premium prices. Since the iPhone 15 series’ September launch, the corporation has avoided lowering pricing, even shocking the market by not doing so.
Since the start of the year, online retailers like Pinduoduo have been offering discounts of up to 16% on the iPhone 15 and iPhone 15 Pro. Senior vice president Nicole Peng of market research firm Canalys noted that these reductions are a reflection of Apple’s impact on sales worldwide, especially in China, where there is intense competition and customers are growing less inclined to upgrade.
Despite these strategic moves, Apple has not formally addressed the matter.