BEIJING – In a strategic move to counter fierce competition from local tech giant Huawei, Apple (AAPL.O) has announced significant discounts on its latest iPhone models in China. The company is offering up to 500 yuan ($68.50) off on selected devices, marking a rare promotional event for the U.S. tech firm.
The promotion, which runs from January 4th to January 7th, is exclusive to purchases made through specific payment methods like WeChat Pay and Alipay. The flagship iPhone 16 Pro, starting at 7,999 yuan, and the iPhone 16 Pro Max, at 9,999 yuan, will both receive a discount of 500 yuan. Meanwhile, the iPhone 16 and iPhone 16 Plus will be reduced by 400 yuan.
This price cut initiative comes at a time when consumer spending in China is under pressure due to a slowing economy and deflation. Consumer inflation in the country hit a five-month low in November, making consumers more price-sensitive.
People check an iPhone 16 Pro as the new iPhone 16 series smartphones go on sale at an Apple store in Beijing, China, September 20, 2024.
Apple’s market share has been on a downward trend in China, the world’s largest smartphone market, where domestic brands are gaining ground. Huawei, in particular, has ramped up its challenge by re-entering the premium market with its locally-produced chipsets since August 2023. The Chinese tech company also implemented price reductions of up to 3,000 yuan on its high-end devices over a weekend sale on one of China’s major e-commerce platforms.
Despite a temporary dip outside the top five smartphone vendors in Q2 2024, Apple managed a recovery in Q3. However, its sales still decreased by 0.3% year-over-year, contrasting sharply with Huawei’s 42% sales increase in the same period, as reported by IDC.
Beyond the latest iPhones, Apple is also extending the discount to older iPhone models with reductions between 200 to 300 yuan, alongside price cuts on other products like MacBook laptops and iPad tablets. This move underscores Apple’s determination to retain its foothold in the competitive Chinese market amidst economic headwinds.
Key Points:
- Rare Discounts by Apple: Apple is offering discounts up to 500 yuan on its latest iPhone models in China to counter competition.
- Promotion Details: The promotion lasts from January 4th to 7th, applicable when using specific payment methods like WeChat Pay or Alipay.
- Affected Models: iPhone 16 Pro and Pro Max get the highest discount of 500 yuan, while iPhone 16 and 16 Plus receive 400 yuan off.
- Economic Context: Discounts come amid cautious consumer spending due to China’s slowing economy and deflationary pressures.
- Competition from Huawei: Apple faces stiff competition from Huawei, which has been aggressively re-entering the premium market with significant price cuts.
- Market Share: Apple experienced a slight sales decline in China in Q3 2024, while Huawei’s sales surged, highlighting competitive pressures.
- Broader Discounts: Besides iPhones, discounts also extend to older iPhone models, MacBooks, and iPads.
