Apple responds to declining sales with discounts on iPhones

WEB DESK: In response to the escalating competition in the largest smartphone market globally, Apple has unveiled rare discounts on its iPhone models in China, with retail prices slashed by up to 500 yuan ($70).

The US tech giant implemented a 5 per cent price reduction on select iPhones, as indicated on its Chinese website this Monday.

Termed as a Lunar New Year promotion, this time-limited event is scheduled to run from January 18 to January 21, building anticipation for the upcoming holiday festivities in mid-February.

Despite the announcement, Apple faces challenges in the Chinese market, where sales of the latest iPhone 15 series have reportedly lagged behind previous models.

Fierce competition from domestic rivals like Huawei Technologies and Xiaomi, offering competitive alternatives, coupled with reports of certain entities limiting the use of Apple devices among their staff, has contributed to this decline.

Analogous to US government restrictions on Chinese apps, some entities in China have curtailed the use of Apple products on security grounds.

Jefferies analysts noted a substantial 30 per cent drop in Chinese iPhone sales during the first week of 2024 compared to the same period last year.

This follows a 3 per cent decline in sales throughout 2023. Analysts anticipate a more challenging competitive landscape for Apple in China this year.

Remarkably, Apple’s decision to reduce iPhone prices comes after a period of maintaining consistent pricing for its latest models.

The move follows the surprising decision not to raise prices during the iPhone 15 series launch in September.

Online shopping platforms, including Pinduoduo, have been quick to respond to the market dynamics, offering significant discounts of up to 16 per cent on the iPhone 15 and iPhone 15 Pro since the beginning of the year.

Nicole Peng, Senior Vice President of market research firm Canalys, expressed that the discounts were not unexpected, considering Apple’s global sales pressure, particularly in China.

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