Apple Offers Rare iPhone Discount in China as Demand Fears Rise
Apple is offering discounts on its iPhone 15 range in China as it faces competition and concerns about demand.
Apple Offers Discounts on iPhones in China
Apple is offering a range of discounts on its products in China, including the latest iPhones, as it competes with local players and deals with fears of a lack of demand for its flagship smartphone.
Between January 18 and January 21, Apple is offering a 500 Chinese yuan ($70) discount on its iPhone 15 range, which includes the most expensive iPhone 15 Pro Max.
This move by Apple is unusual as it is rare for the company to offer discounts on its own retail channel. However, third party retailers in China sometimes offer discounts on iPhones during holiday periods.
Competition from Local Players
Apple's decision to offer discounts comes as it faces rising competition from local players such as Xiaomi and Huawei, who are offering competitive high-end products in the market.
Last year, Huawei launched a smartphone with a high-end chip, despite US sanctions. The device helped Huawei boost its sales and make a comeback in the smartphone market in China.
Analysts at Jefferies have attributed Apple's decline in iPhone sales to competition from Huawei's device.
Concerns About Demand
Jefferies analysts also estimated that Apple experienced a 30% decline in iPhone sales year on year in the first week of January. They also reported a 3% year-on-year decline in iPhone sales in China in 2023.
These concerns about demand for iPhones are likely a driving factor behind Apple's decision to offer discounts in China.
The discounts are being offered ahead of the Lunar New Year in mid-February, which is a holiday period in China and typically sees increased consumer spending.