In a surprising move, Apple Inc. has announced discounts of up to 500 yuan ($70) on its latest iPhone models in China. This marks a rare occasion as Apple rarely offers price cuts on its flagship devices in the country. With this discount, which is equivalent to approximately 5% off the retail price, Apple aims to boost sales during the upcoming Lunar New Year shopping season.
The decision to introduce discounts on iPhones comes at a crucial time when the demand for Apple products in China is facing challenges. Chinese consumers are increasingly favoring local brands like Huawei Technologies Co., while the government has implemented policies that restrict the use of foreign devices in state-backed agencies and companies. As a result, Apple has observed weaker iPhone sales in comparison to previous models. Analysts suggest that the iPhone 15, released in China last year, performed poorly in the market.
Research firm Jefferies has even warned that 2023 iPhone sales in China may have decreased by as much as 30% after Huawei launched its Mate 60 series, which features a 7-nanometer made-in-China processor. This achievement was praised by Chinese state media as a breakthrough despite the US sanctions imposed on Huawei.
While Apple's retail partners in China have previously offered more significant discounts on iPhones, Apple itself rarely cuts prices on its latest devices. However, as the Lunar New Year approaches, which is considered the most important holiday in China, the company has decided to roll out discounts on various products. Aside from the iPhone 13 and iPhone 15 Pro Max, Apple will also offer savings on the MacBook Air, select iPad models, certain AirPods, and the Apple Watch SE. The MacBook Air will see a substantial price reduction of up to 800 yuan.
By strategically introducing these discounts, Apple aims to attract more customers in China and regain some lost market share. The Lunar New Year shopping season is a time when consumers tend to make significant purchases, and Apple is hoping to capitalize on this opportunity.
It remains to be seen whether the discounts will have a substantial impact on iPhone sales in China. The competition from domestic brands and the government's emphasis on supporting local technology companies pose significant challenges for Apple in the Chinese market. Nonetheless, by offering rare price cuts on its latest iPhones, Apple is taking a proactive approach to address the declining demand and win over Chinese consumers.