Apple cuts iPhone 15 series prices in China due to increasing competition

Apple is offering a rare discount on its iPhones in China, cutting retail prices by as much as 500 yuan ($70) amid growing competitive pressure in the world’s biggest smartphone market.

The US tech giant has cut the prices of some iPhones by 5%, its Chinese website said on Monday. The time-limited promotion, known as the Lunar New Year Event, will run from January 18 to January 21 in the lead up to the holidays in mid-February.

Sales of Apple’s latest iPhone 15 series of handsets have been much worse than previous models in China.

Domestic rivals such as Huawei Technologies and Xiaomi offer competing models, while sources have said some companies and government departments are limiting the use of Apple devices to employees – defying US government restrictions on Chinese apps on security grounds. it shows.

Chinese iPhone sales fell 30% in the first week of 2024 compared with the same period a year earlier, with a 3% decline for all of 2023, Jefferies analysts said in a client note. Analysts expect the competitive landscape to become tougher this year.

Apple hasn’t cut the prices of its latest iPhones in years. The cut comes after Apple surprised the market by not raising prices for the iPhone 15 series when it launched in September.

Online shopping platforms including Pinduoduo have been reducing the prices of iPhone 15 and iPhone 15 Pro by up to 16% since the beginning of the year.

Nicole Peng, senior vice president at market research firm Canalys, said the discount is not a surprise as Apple is under pressure to boost sales globally and especially in China amid increasing competition and Apple fans’ growing reluctance to upgrade.

“It is clear that Huawei is making a comeback,” Peng said, “some Chinese consumers may be motivated by patriotism to start using Huawei.”

Canalys expects Apple’s sales to remain stable worldwide this year while falling slightly in China.

Apple did not respond to a request for comment.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)