Apple Offers Rare Discounts on iPhones in China Amid Growing Competition
In a bid to stay competitive in China’s smartphone market, Apple is offering rare discounts on its iPhones, with price cuts of up to 500 yuan ($68.50, £55.30) on some of its latest handsets. The four-day promotion, which starts on January 4, covers Apple’s top models, including the iPhone 16 Pro and iPhone 16 Pro Max, as well as older handsets and other devices.
Huawei Also Cuts Prices
Chinese smartphone maker Huawei is also slashing prices of its high-end mobile devices by up to 20%, in a move to attract price-conscious consumers. The discounts come as Chinese consumers remain cautious about spending due to the country’s economic challenges.
Changing Consumer Behavior
According to Will Wong, a senior research manager at International Data Corporation (IDC), Apple’s strategy shift is a response to changing consumer behavior in China. “The value-seeking trend has made price discounts more attractive to consumers. Apple may fall behind other competitors if it doesn’t adopt such a pricing strategy,” Wong said.
Wider Trend in China
The discounts offered by Apple and Huawei reflect a broader trend in China, where companies across various industries, including online retail and automotive, are offering deals to attract customers. As the world’s second-largest economy slows, consumers have become increasingly reluctant to spend, making price discounts more appealing.
Increasing Competition
Apple’s market share in China has come under pressure from local rivals, such as Vivo and Xiaomi. According to IDC’s latest research, Vivo was the best-selling smartphone maker in China in the third quarter of 2024, with sales jumping by over 20%. Apple’s sales, on the other hand, dipped by 0.3% during the same period. Huawei’s sales surged by over 40% after its return to the premium smartphone market in August last year.
