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Apple Offers China Discounts Amid Fierce Competition

In a strategic move to counter growing competition and concerns about demand for its flagship smartphones, Apple is offering substantial discounts on a range of products in China. The discounts, visible on the company’s official website, include a rare price cut of 500 Chinese yuan ($70) on its latest iPhone 15 series, encompassing even the high-end iPhone 15 Pro Max.

Running from January 18 to January 21, these promotional offers also extend to select Mac models and the iPad, timed strategically ahead of the upcoming Lunar New Year celebrations in mid-February.

The decision to implement such discounts is noteworthy, given that it is unusual for Apple to independently reduce prices through its own retail channels. Analysts at Jefferies, in a note on January 7, estimated a 30% year-on-year decline in iPhone sales during the first week of January. They also reported a 3% year-on-year dip in iPhone sales in China throughout 2023.

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This decline is attributed to intensifying competition from local tech giants like Xiaomi and Huawei, both of which have been offering compelling high-end products. Huawei, despite U.S. sanctions, launched a smartphone featuring a high-end chip, hailed as a technological breakthrough by state media. This move has significantly contributed to Huawei’s resurgence in the Chinese smartphone market after facing setbacks due to U.S. restrictions.

Jefferies points to Huawei’s device as one of the factors behind Apple’s iPhone sales slump in 2023. With these discounts, Apple aims to regain market momentum, acknowledging the changing dynamics and striving to maintain its competitive edge in the fiercely contested Chinese smartphone market.

Austin Kaiser
Austin Kaiser
Austin Kaiser is a self-taught value investor with over 10 years of experience. He holds an MBA from Florida State University and certifications in Risk Management Assurance and Internal Auditing. Austin covers the Business News category for our site.

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