In a bid to combat growing competition in the Chinese smartphone market, Apple has announced rare discounts on its iPhone 15 series. The U.S. tech giant has reduced the retail prices of some iPhone models by as much as 5%. Apple’s decision to offer discounts on its iPhones in China is a response to the intensifying competition in the world’s largest smartphone market. Homegrown rivals such as Huawei Technologies and Xiaomi have been offering competitive models, attracting consumers with their advanced features and competitive pricing. Additionally, some companies and government departments in China have reportedly been limiting the use of Apple devices, mirroring the U.S. government’s restrictions on Chinese apps for security reasons.
Sales of Apple’s latest iPhone 15 series have been disappointing in China. Chinese iPhone sales dropped by 30% in the first week of 2024 compared to the same period the previous year. Analysts have attributed this decline to the increasing competition from local brands and the reluctance of Apple fans to upgrade their devices. To counter this trend, Apple has decided to offer discounts on its iPhones, a strategy aimed at boosting sales and regaining market share.
Apple’s rare discount offer on its iPhone 15 series is a time-limited promotion branded as a Lunar New Year event. The discounts, which can reach up to 500 yuan ($70), will be available from January 18th to January 21st, coinciding with the lead-up to the mid-February holiday. This move is a departure from Apple’s usual pricing strategy, as the company has not cut prices for its latest iPhones in years.
The discount offer by Apple reflects the company’s efforts to regain its foothold in the highly competitive Chinese smartphone market. However, analysts expect the competitive landscape to become even tougher for Apple in the coming year.
RTM Watch’s Take
Apple’s decision to offer rare discounts on its iPhone 15 series in China highlights the company’s recognition of the intensifying competition in the market. The discounts aim to attract consumers and boost sales, as Apple faces challenges from local competitors and a decline in iPhone sales. However, the growing preference for local brands and the reluctance of Apple fans to upgrade their devices pose significant obstacles for the company. Apple will need to continue innovating and adapting its strategies to regain its market share in China’s highly competitive smartphone market.
