Apple dealers in China are offering significant discounts on the latest iPhone 15 series in an attempt to reignite sales and counter growing competition from domestic brands like Huawei. This comes after a previous promotion in January that offered a much smaller discount.
The top-of-the-line iPhone 15 Pro Max, initially priced at 9,999 yuan (US$1,390), is now being sold for 8,849 yuan (US$1,230) on major e-commerce platforms like Alibaba’s Tmall and JD.com. This marks a significant price cut of 1,150 yuan (US$160) and coincides with the upcoming International Women’s Day sales on March 8th. Notably, these discounts are exclusive to authorized retailers and not available on Apple’s official website in China.
Analysts believe these aggressive promotions are a reflection of Apple’s growing inventory of iPhones and their awareness of the increasing pressure from local smartphone manufacturers, particularly Huawei. Huawei, for instance, recently captured the top spot in the Chinese smartphone market for the first two weeks of 2024, partly due to the launch of their advanced 5G-equipped Mate 60 Pro models.
Market experts attribute Apple’s slowing sales to several factors. Firstly, the gap between features offered by iPhones and high-end Android devices has narrowed significantly. While recent iPhone updates have been incremental, Android counterparts have seen major technological advancements. Secondly, the absence of foldable phones in the iPhone lineup, a segment gaining popularity among Chinese high-end users, is another contributing factor. Additionally, Apple lags behind competitors in integrating advanced AI functionalities into their smartphones, although CEO Tim Cook has hinted at upcoming disclosures regarding the company’s AI plans.
Analysts like Kuo Ming-chi predict that Apple will face a continuous decline in iPhone shipments within the Chinese market this year, attributing it to these structural changes and the emergence of new trends in premium phone design. This prediction aligns with Apple’s reported 13% revenue drop in the December quarter from Greater China, highlighting the challenges they face in this critical market.