Apple is offering staggering discounts on iPhones sold in China, slashing retail prices by 500 yuan ($70) amid growing competition in the world’s biggest smartphone market, Reuters and Agerpres reported.
The American giant announced on Monday on its website in China that it has reduced the prices of some iPhones by 5%. The promotion, which runs from January 18 to 21, is described as a Lunar New Year event, celebrated on the second new moon after the winter solstice.
Sales of the latest iPhone 15 model in China were weaker compared to previous models. Apple gained ground in the Chinese market after sanctions imposed by Washington in 2020 cut off Huawei’s access to chips made by major manufacturers such as TSMC.
The resurgence of the competitiveness of Huawei phones has allowed the Chinese group to regain some of its lost market share, and now Huawei has begun developing its own software ecosystem to compete with Apple’s iOS and Alphabet Inc’s Android.
A sharp drop in Apple sales in China
In the first week of this year, iPhone sales in China fell 30% compared to the same period in 2023, according to analysts Jefferies, and for the whole of last year there was a decline of 3%. The trend of declining iPhone sales in China is intensifying, and it is possible that the American Apple group will record a new decline in volumes this year, Jeffries warns.
Apple has not lowered the prices of the latest iPhone models for years. Online shopping platforms including Pinduoduo have slashed iPhone 15 and iPhone 15 Pro prices by 16% year-to-date.
Nicole Peng of research firm Canalys said the discounts should not come as a surprise given that Apple is under pressure to increase sales globally, particularly in China, amid growing competition and a growing reluctance among Apple fans to upgrade their devices.
“The return of Huawei is obvious. Some Chinese consumers may prefer to use Huawei out of patriotism,” Peng said. Canalys expects Apple’s sales to remain flat globally in 2024 and register a slight decline in China. Apple officials did not respond to requests for comment.
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Source: Hot News
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