Apple is offering rare discounts on iPhones in China, cutting retail prices by up to $70, as competitive pressure mounts in the world's largest smartphone market.
The US tech giant has cut the prices of some iPhones by 5%, the company's Chinese-language website said on Monday. The limited-time promotion, billed as the Chinese New Year event, will run from January 18th to January 21st, leading up to the mid-February holiday.
Sales of Apple's latest devices, the iPhone 15 series, in China were far worse than previous models.
Domestic rivals such as Huawei and Xiaomi offer competitive models, but sources say some companies and government departments are restricting the use of Apple devices by their employees. The restrictions reflect the U.S. government's restrictions on Chinese apps for security reasons.
Jefferies analysts said in a note to clients that iPhone sales in China were down 30% year over year in the first week of 2024, and down 3% for all of 2023. Analysts expect the competitive environment to become even tougher this year.
Apple hasn't lowered the price of its latest iPhones in years. This price cut comes after the company surprised the market by not increasing the price of the iPhone 15 series when it was launched in September.
Online shopping platforms such as Pinduoduo have slashed iPhone 15 and iPhone 15 Pro prices by up to 16% since the beginning of the year.
Nicole Penn, senior vice president at market research firm Canalys, said Apple is under pressure to expand sales around the world, particularly in China, amid increasing competition and Apple fans' reluctance to upgrade. He said the discount was not surprising.
“It's clear that Huawei is making a comeback,” Peng said. “Some Chinese consumers may return to using Huawei out of patriotism.”
Canalys expects Apple's sales to remain flat globally this year, but to decline slightly in China.
Apple did not respond to a request for comment.
