Have you ever bought a new cell phone at a discount from Apple? For most people, the answer is no. That’s because Apple doesn’t actually offer discounts.
But in China, Apple is cutting the price of some of its newest iPhones by $70 over concerns that Chinese consumers are losing interest in the iPhone brand. Based on the prices on Apple’s China website, this would save buyers about 6-8%. The price of some of his MacBook Air laptops has also been reduced by $112. The sale begins Thursday and runs through Sunday.
Cutting prices on high-end electronics for Chinese buyers is an unexpected move for Apple and underscores the challenges American companies face in China, where patriotic shoppers are opting for domestic brands amid rising U.S.-China tensions. It is something to highlight.
Apple and its Chinese rival Huawei are at the forefront of a technology battle between China and Washington, with both countries restricting access to foreign technology. U.S. officials, long suspicious of Huawei’s close ties to the Chinese government and wary of the possibility that its technology could be used for espionage purposes, have blocked federal agencies from purchasing equipment from Huawei. , other countries have tried to prevent it as well.
China has also told some government employees not to use iPhones at work and is promoting domestic brands.
Tit for tat is bad for business. Apple has a lot to lose from the escalating tensions between the US and China, a huge market that accounts for one-fifth of its total sales.
Due to the slowdown in the Chinese economy, overall smartphone sales in China decreased by about 3% in 2023. It is also the only major economy to fall into deflation as China cut spending and household savings reached a new high.
Huawei is eyeing Apple’s market share in China, recently announcing smartphones with enhanced cameras that Apple has long touted as a selling point.
Apple announced in November that its overall sales in China fell 2.5%. The company reported three quarters of declining sales last year.
It is not unusual for discounts to be offered ahead of next month’s Chinese New Year. Spring Festival is one of the biggest shopping periods of the year in China. Apple’s current promotion includes images of giant dragons made of iPhones, Apple watches, and AirPods, in honor of next year’s zodiac year of the dragon.
The discount sparked discussion on Chinese social media on Monday.
“Apple will only lower the price of its phones if domestically produced phones become more popular,” wrote a prominent blogger known as Zhang Beihai of Victory. Another reviewer wrote: Supports domestic calls. ”
Toby Zhu, a senior analyst at market research firm Canalys, said Apple’s Lunar New Year promotion “is a move we haven’t seen very often in the past.” Apple’s sales in China last summer declined compared to 2022, but the company still holds about 66% of China’s high-end smartphone market, according to Canalys research.
Zhu added that the iPhone models being promoted appear to have already sold out.
Still, he added, “this shows the challenges Apple faces in the mainland Chinese market.”
olivia wang Contributed to the report.