Have you ever bought a new phone from Apple at a discounted price? For most people, the answer is no. That’s because Apple doesn’t actually give discounts.
But in China, Apple is cutting the price of some of its latest iPhones by $70 amid concerns that Chinese consumers have become indifferent to the brand. This will save the buyer about 6 to 8 percent depending on the prices Apple’s China website, It has also cut the price of some MacBook Air laptops by $112. The sale will start from Thursday and continue till Sunday.
Cutting the prices of high-end electronics for buyers in China is an unexpected move for Apple, highlighting the challenges facing the American company in China, where patriotic buyers are turning to domestic brands amid rising US-China tensions. Are choosing.
Apple and its Chinese rival, Huawei, are on the front lines of the battle over technology between Beijing and Washington, in which both countries have restricted access to foreign technology. US officials, long suspicious of Huawei’s close ties to the Chinese government and concerned that its technology could be used for spying, have barred federal agencies from purchasing equipment from Huawei and have tried to discourage other countries as well. Is.
China, for its part, has issued a directive to some of its government employees not to use iPhones at work and encouraged domestic brands.
A tit-for-tat policy is not good for business. Apple has a lot to lose from rising tensions between the United States and China, a huge market that generates one-fifth of its total revenue.
Total smartphone sales in China fell by about 3 percent in 2023 due to the country’s slowing economy. It is also the only major economy to sink into deflation as China cuts spending and household savings reach higher levels.
Huawei has taken aim at Apple’s market share in China, recently introducing a smartphone with a better camera, which Apple has long advertised as a selling point.
Apple said in November that its overall sales in China fell 2.5 percent. The company has registered a decline in sales in three quarters of last year.
Discounts are not uncommon before the Lunar New Year, which is next month and one of the biggest shopping periods of the year in China. Apple’s current promotion includes an image of a giant dragon made of iPhones, Apple Watches, and AirPods, hinting at the upcoming Year of the Dragon in the Chinese zodiac.
The exemption prompted debate on Chinese social media on Monday.
A famous blogger named Victorious Zhang Beihai wrote, “Apple will cut the price of its phones only when domestic phones become more popular.” Another commenter wrote: “It’s still too expensive. I support home phones.
Apple’s Lunar New Year promotion is “a move that typically hasn’t been seen in the past,” said Toby Zhu, a senior analyst at market research firm Canalys. Research from Canalys indicates that Apple’s sales in China fell last summer compared to 2022, but the company still holds about 66 percent of the high-end smartphone market in China.
Mr Zhu said the iPhone models under the promotion had already sold out.
Still, he said, “It signals the challenges Apple faces in the mainland China market.”