Why is Apple offering rare discounts on iPhone in China?
getty imagesBuyers in China are getting rare discounts on iPhones as Apple faces increasing competition from local brands.
The four-day promotion, starting this Saturday (January 4), includes up to 500 yuan ($68.50, £55.30) off some of the US tech giant’s latest handsets.
Chinese phone maker Huawei has also cut the prices of its high-end mobile devices by up to 20%.
This discount has been given because consumers in China are hesitant to spend due to the country’s economic challenges.
This offer includes Apple’s top models as well as older handsets and some other devices.
The biggest discount of 500 yuan will be applied to Apple’s flagship iPhone 16 Pro, which has a starting price of 7,999 yuan, and iPhone 16 Pro Max which is currently priced at 9,999 yuan.
The company ran a similar promotion in China last year ahead of the Lunar New Year holidays. This year the festival will start at the end of January.
change behavior
“Apple’s strategy has changed in line with changes in Chinese consumers’ purchasing behavior,” said Will Wong, senior research manager at market intelligence firm International Data Corporation (IDC).
“The value-capture trend has made price discounts more attractive to consumers. If Apple does not adopt such a pricing strategy it could lag behind other competitors.”
The discounts being offered by Apple and Huawei reflect a broader trend in China.
From online retail giants to the country’s carmakers, deals are being offered to attract customers who are reluctant to spend due to the slowdown in the world’s second-largest economy.
Against this backdrop, Apple’s Chinese market share has come under increasing pressure from local rivals such as Vivo and Xiaomi.
local competition
The US company rejoined China’s top five smartphone makers in the third quarter of 2024 after being out of the list for a short time.
According to the latest research from IDC, Vivo was China’s best-selling smartphone maker during the period as its sales grew by more than 20%.
During the same period, Apple saw its sales decline by 0.3%. Huawei jumped more than 40%.
“We’ve seen increased market competition in the last quarter with almost everyone launching a flagship,” said Evan Lamm, a senior analyst at Counterpoint Research.
Huawei has seen a surge in demand for its products after returning to the premium smartphone market in August last year.
The Shenzhen-based company has launched a number of new devices powered by advanced technology despite facing US sanctions.
