Reuters | Edited by NE Watch Desk
Facing escalating competition in China’s
growing smartphone market, Apple has initiated rare discounts on its iPhones,
cutting retail prices by up to 500 yuan ($70). The US tech giant announced a
limited-time Lunar New Year promotion, reducing prices by 5 per cent on
selected iPhones from January 18 to January 21, leading up to the mid-February
holiday.
This strategic move follows
underwhelming sales of Apple’s latest iPhone 15 series in China, where local
competitors like Huawei and Xiaomi present robust alternatives. Additionally,
reports suggest that certain companies and government departments are restricting
staff from using Apple devices, echoing similar limitations imposed by the US Government
on Chinese apps for security reasons.
According to Jefferies analysts, Chinese
iPhone sales experienced a 30 per cent drop in the first week of 2024 compared
to the same period in the previous year, following a 3 per cent decline
throughout 2023. The competitive landscape is expected to intensify further in
the coming year.
Apple, which has refrained from cutting
iPhone prices for years, surprised the market by not raising prices for the
iPhone 15 series during its September launch. Online platforms like Pinduoduo
have already been offering significant discounts of up to 16 per cent on the
iPhone 15 and iPhone 15 Pro since the start of the year.
Nicole Peng, senior vice president of
market research firm Canalys, noted that the discounts were not unexpected,
considering Apple’s global sales challenges and the heightened competition in
China. Peng highlighted Huawei’s resurgence, suggesting that some Chinese
consumers might shift back to Huawei due to patriotic sentiments.
Canalys predicts Apple’s global sales to
remain flat this year while experiencing a slight decline in China. Despite
requests for comment, Apple has not responded to the pricing adjustments.
