Apple slashes iPhone prices in China, up to $70 discount offered

Apple's China discounts: Apple is currently offering discounts on its iPhone models in China, slashing retail prices by up to 500 yuan ($70). The decision comes in response to escalating competition within the world's largest smartphone market. Displayed on its Chinese website, Apple has implemented a 5 per cent price reduction on certain iPhones, unveiling the promotion as a limited-time Lunar New Year event scheduled from January 18 to January 21, just ahead of the mid-February holiday.

iPhone 15 challenges

The sales performance of Apple's latest iPhone 15 series in China has faced significant challenges, falling below the success of previous models. This decline is attributed to the aggressive competition posed by domestic rivals like Huawei Technologies and Xiaomi, which have been offering compelling alternatives. Reports also indicate that certain Chinese companies and government entities are curbing the usage of Apple devices amongst their staff, mirroring the US government's restrictions on Chinese apps for security reasons.

Jefferies' analysts highlighted a substantial 30 per cent decline in Chinese iPhone sales in the first week of 2024 compared to the same period the previous year. This follows a 3 per cent dip in sales throughout 2023, with projections indicating an increasingly tough competitive landscape for Apple in China this year.

Of note is Apple's decision to cut iPhone prices, which comes after the unexpected move of not raising prices for the iPhone 15 series during its September launch. Online retail platforms, including Pinduoduo, have also joined in by reducing prices for the iPhone 15 and iPhone 15 Pro, offering discounts of up to 16 per cent since the beginning of the year.

As of now, Apple has not responded to requests for comments on these pricing adjustments.

(With Reuters Inputs)