Apple Slashes iPhone Prices In China

Apple has responded with price cuts in China, after its recent second quarter results revealed iPhone quarterly sales were down 10.5 percent to $45.9bn from $51.3bn.

In response Reuters has reported that Apple has launched an aggressive discounting campaign on its official Tmall site in China, offering discounts of up to 2,300 yuan ($318) on select iPhone models.

It comes amid repeated warnings from research groups about slowing consumer demand for new handsets, amid ongoing global economic problems and high interest rates.

China price cuts

China is one of Apple’s most important markets, but it is facing intense local competition from the likes of Huawei, which is experiencing strong demand for its Mate 60 series and the Pura 70.

According to Reuters, Apple from 20 to 28 May, is offering price cuts more substantial than the one Apple offered in February.

While the highest discount in the February campaign was 1,150 yuan ($159), this time discounts are up to 2,300 yuan ($318), Reuters noted.

The steepest discount applies to the 1TB iPhone 15 Pro Max model, while other models also see significant price cuts.

Reuters’ checks on Monday found for example the 128 GB version of the base iPhone 15 model has a discount of 1,400 yuan ($193).

Slowing demand

In March research from analyst house Counterpoint found that during first six weeks of 2024 smartphone unit sales in China had declined by 7 percent year-on-year.

It also found that Apple iPhone sales in China had fallen 24 percent over the period, due to stiff competition and an abnormally high January 2023.

In January it was reported that Apple offering extremely unusual discounts to its products in China, including the latest iPhones, as it faces increased competition from domestic rivals.

It came after Analysts Jeffries had estimated that Apple sold 30 percent fewer iPhones in China in the first week of January compared to a year earlier.

Last month Counterpoint confirmed that Apple saw sales of its iPhone portfolio fall 19.1 percent in the first three months of the year in China.