Apple is lowering the prices of its iPhones by as much as 500 yuan ($70) in China. This move comes as a response to growing competition in the world's biggest smartphone market.
The American tech giant reduced the cost of select iPhone models by 5% on Monday, according to its Chinese website. In advance of the celebration in mid-February, a time-limited offer dubbed a Lunar New Year event will run from January 18 to January 21.
In China, the sales of Apple's latest iPhone 15 series have seen a notable decline compared to previous models. Local rivals such as Xiaomi and Huawei offer alternative options. There are reports suggesting that some companies and government entities are limiting the use of Apple devices by their employees. This restriction resembles the U.S. government's actions, which banned certain Chinese apps citing security concerns.
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According to a client note from Jefferies analysts, Chinese iPhone sales fell 30% in the first week of 2024 compared to the same period the previous year. Sales had already decreased 3% for the entire year of 2023. Analysts predict that this year will see more competition.
Apple has maintained the prices of its latest iPhone models without reductions for an extended period.
However, the unexpected launch of the iPhone 15 series in September led to a surprising change. Starting from the beginning of the year, online sellers like Pinduoduo have been offering discounts of up to 16% on the iPhone 15 and iPhone 15 Pro.
The discounts, according to Nicole Peng, senior vice president of market research firm Canalys, were not unexpected given Apple's drive to increase sales worldwide, particularly in China, given the fiercer competition and the growing reluctance of Apple devotees to upgrade.
"It is clear that Huawei is making a comeback," Peng stated, "Some Chinese consumers may return to using Huawei as driven by patriotism."
Canalys predicts that Apple's global sales will remain stable this year, but there might be a slight decrease in sales in China.
