(CTN News) – To respond to increasing competition in the world’s largest smartphone market, Apple is reducing retail prices of its iPhones by up to 500 yuan ($70) in China as part of an unusual discount program.
According to its Chinese website, Apple reduced the price of select iPhone models by 5% on Monday. From January 18 to January 21, a limited-time offer dubbed the Lunar New Year event will run in anticipation of the celebration in mid-February.
iPhone 15 sales in China have been significantly lower than earlier models.
According to sources, some businesses and government agencies are limiting employee use of devices due to security concerns, similar to the United States government’s ban on Chinese apps. Huawei Technologies and Xiaomi are domestic competitors.
According to Jefferies analysts, Chinese iPhone sales dropped 30% in the first week of 2024 compared to the same period last year. In 2023, sales had already decreased 3%. This year, analysts predict more competition.
The price of Apple’s most recent iPhone models has not changed for years. Following the launch of the iPhone 15 series in September, the market was surprised by the price reductions.
Up to 16% off has been offered by online retailers like Pinduoduo since the start of the year.
Nicole Peng, senior vice president of market research firm Canalys, said the discounts were not unexpected given Apple’s desire to increase sales worldwide, particularly in China, as well as the reluctance of Apple devotees to upgrade.
It’s clear Huawei is making a comeback,” Peng said, “Some Chinese consumers may return to Huawei for patriotic reasons.”
According to Canalys, Apple sales this year will remain unchanged worldwide, while China will see a modest drop.