1 week Ago
Apple Inc. (AAPL.O) has announced a rare promotion in China, offering discounts of up to 500 yuan ($68.
50) on its latest iPhone models. The four-day sale, running from January 4 to January 7, highlights the U.S.
tech giant’s efforts to bolster its market share in the face of rising competition from domestic rivals like Huawei. The promotional discounts apply to various iPhone models and other Apple products, including MacBook laptops and iPad tablets. The flagship iPhone 16 Pro, priced at 7,999 yuan, and the iPhone 16 Pro Max, starting at 9,999 yuan, will receive the maximum discount of 500 yuan.
Additionally, the iPhone 16 and iPhone 16 Plus will see price reductions of 400 yuan. Customers purchasing older iPhone models will also benefit from discounts ranging from 200 to 300 yuan. To qualify for the promotion, purchases must be made using specific payment methods such as WeChat Pay or Alipay, as listed on Apple’s website.
Apple’s promotional move comes against the backdrop of China’s slowing economy, where cautious consumer spending and deflationary pressures are affecting sales. In November 2024, the country's consumer inflation hit a five-month low, reflecting weakened demand. China, the world’s largest smartphone market, has seen intensified competition among local and international brands.
Apple faces mounting challenges from Huawei, which has made a strong comeback in the premium smartphone segment since August 2023. Huawei’s introduction of locally-manufactured chipsets and significant price cuts on high-end devices have reshaped the competitive landscape. Apple briefly fell out of the top five smartphone vendors in China during the second quarter of 2024, only to recover in the third quarter.
However, its smartphone sales in the country declined by 0.3% year-over-year in Q3 2024, according to research firm IDC. Meanwhile, Huawei’s sales surged by an impressive 42% during the same period, solidifying its position as a dominant player.
Over the weekend, Huawei slashed prices on a variety of high-end devices by up to 3,000 yuan on a leading Chinese e-commerce platform, putting further pressure on Apple to maintain its foothold in the market. This rare promotional campaign underscores Apple’s strategy to defend its position in the highly competitive Chinese market. While price cuts are uncommon for Apple, the company’s decision to offer discounts highlights the urgency of retaining market share amid challenges from both economic conditions and aggressive domestic competitors.
As the promotion unfolds, Apple’s ability to attract price-sensitive consumers in China will be closely watched. The discounts not only aim to boost sales but also to reaffirm the brand’s relevance in a rapidly evolving market. The results of this campaign could serve as a barometer for Apple’s resilience in one of its most critical global markets.
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