Beijing: Shoppers in China are seeing rare discounts on iPhones as Apple faces growing competition from local brands.
A four-day promotion, starting on January 4, will offer discounts of up to 500 yuan ($68.50, £55.30) on some of Apple’s newest models, including the flagship iPhone 16 Pro and iPhone 16 Pro Max, which are priced at 7,999 yuan ($1,103.86 / £911.89) and 9,999 yuan ($1,379.86 / £1,139.89), respectively. The offer will also extend to older handsets and other devices.
This move comes as Chinese consumers remain hesitant to spend due to the country’s ongoing economic challenges. At the same time, Chinese phone maker Huawei has slashed prices on its high-end smartphones by as much as 20%, signalling a wider trend of price cuts across industries in China to attract cautious shoppers.
Apple’s strategy appears to be shifting to adapt to changing shopping behaviour in China. Will Wong, a senior research manager at market intelligence firm IDC, noted that the growing trend of value-seeking behaviour among consumers makes price discounts more attractive.
Wong suggested that Apple could fall behind local competitors if it does not adjust its pricing strategy.
The discounts come at a time when Apple’s position in the Chinese market is under pressure. The company’s share dropped slightly, with sales dipping by 0.3% in Q3 2024. During the same period,
Huawei’s sales surged by over 40%, and Vivo saw a 20% increase, becoming China’s top-selling smartphone brand. Apple had briefly dropped out of China’s top five smartphone makers but managed to re-enter the list in the third quarter of 2024.
This increase in competition is reflected by the rise of Huawei, which has seen growing demand for its premium smartphones following its return to the high-end market in August 2023. Despite facing US restrictions, Huawei has continued to launch new devices powered by advanced technology.
The wider trend of price cuts extends beyond smartphones, with online retailers and car makers in China offering deals to entice customers, as the country’s economy continues to slow down.
MOST READ | BYD closes in on Tesla with record EV sales in December
