Apple has launched a rare promotion in China, offering discounts of up to 500 yuan ($68.50) on its latest iPhone models as it strives to defend its market share in the world’s largest smartphone market. The four-day campaign, running from January 4 to 7, comes amidst increasing competition from domestic rivals such as Huawei and cautious consumer spending in the region.
Discounts on the Latest iPhones
The promotion applies to several iPhone models when purchased using designated payment methods, including WeChat Pay and Alipay. The flagship iPhone 16 Pro, which starts at 7,999 yuan, and the iPhone 16 Pro Max, priced at 9,999 yuan, will receive the maximum discount of 500 yuan. Meanwhile, the iPhone 16 and iPhone 16 Plus will be discounted by 400 yuan.
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Apple is also extending discounts to older iPhone models, with reductions of 200 to 300 yuan. Other Apple products, such as MacBook laptops and iPad tablets, are also included in the promotion, making it one of the company’s most comprehensive discount events in recent years.
Adapting to Consumer Trends
The discounts come as Chinese consumers remain cautious with their spending due to the country’s slowing economy and deflationary pressures. In November, China’s consumer inflation hit a five-month low, reflecting broader economic challenges.
Experts suggest that Apple’s pricing strategy reflects an adaptation to changing consumer behavior in China, where value-seeking trends are becoming more prevalent. Will Wong, a senior research manager at IDC, noted that such promotions have become crucial for maintaining competitiveness in the market.
Rising Competition from Huawei
Apple’s promotion also highlights the intensifying competition it faces from local smartphone manufacturers. Huawei, in particular, has emerged as a formidable rival since its return to the premium smartphone segment in August 2023. The Chinese tech giant has leveraged locally-made chipsets to power its high-end devices, capturing significant consumer interest.
Over the weekend, Huawei slashed prices on several of its high-end devices, offering discounts of up to 3,000 yuan on major e-commerce platforms. The company’s strategy has paid off, with Huawei recording a 42% surge in smartphone sales during the third quarter of 2024 compared to the previous year, according to IDC.
Apple’s Struggles in China
Apple briefly fell out of China’s top five smartphone vendors in the second quarter of 2024 but managed to recover its position in the third quarter. However, the company’s smartphone sales in China still dipped by 0.3% year-on-year during this period, underscoring the challenges it faces in retaining market share.
Meanwhile, local competitors such as Vivo and Xiaomi have gained traction, with Vivo emerging as the best-selling smartphone maker in China in the third quarter, achieving over 20% growth in sales.
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The discounts by Apple and Huawei mirror a broader trend in China, where companies across industries are offering promotions to attract consumers amidst a sluggish economy. The Chinese government has also introduced initiatives to boost consumption, including expanding a trade-in program to cover mobile phones, tablets, and other devices.