(Daily Point) — In response to escalating competitive pressures in China, Apple has chosen to introduce rare discounts on its iPhone lineup, particularly the latest iPhone 15 series.
This decision reflects the tech giant’s endeavor to counter disappointing sales in the world’s largest smartphone market, where it faces tough competition from domestic rivals like Huawei Technologies and Xiaomi.
The price reductions, amounting to up to 500 yuan ($70), equate to a 5% discount on selected iPhone models. This move is part of a limited-time Lunar New Year promotion scheduled from January 18 to January 21, strategically aligned with the holiday season that extends into mid-February. The discounted prices are positioned as an enticing factor for consumers to opt for Apple products over alternatives offered by local competitors.
The challenges for Apple in the Chinese market are diverse. Apart from compelling offerings from domestic brands, there are reports of both companies and government entities restricting the use of Apple devices among their personnel. This restriction mirrors actions taken by the U.S. government against Chinese apps on security grounds. Such limitations pose a considerable threat to Apple’s market share, given that a substantial portion of smartphone sales in China is driven by corporate and government acquisitions.
Chinese iPhone sales had already witnessed a significant decline, with a 30% drop in the first week of 2024 compared to the same period the previous year. Analysts from Jefferies highlighted a 3% decrease in sales for the entire year of 2023. The adjustment in pricing strategy indicates Apple’s recognition of the evolving market dynamics and its willingness to adapt to the challenges at hand.
As industry analysts anticipate a more challenging competitive landscape in the upcoming year, Apple’s move to reduce prices in China is viewed as a strategic response aimed at revitalizing demand, reclaiming market share, and effectively addressing the distinct challenges it confronts in a market crucial to its global success.
