Apple is struggling with a slowdown in the Chinese market and is making significant efforts to maintain its market share by drastically reducing the prices of iPhones.
The South China Morning Post (SCMP) reported on the 20th that Apple is offering a new range of drastic discounts to mainland Chinese consumers through online retail platforms selling iPhones. On Jingdong.com and Tmall (Alibaba)’s Apple Inc. official online stores, the top-tier model iPhone15 Pro Max (256GB) is selling for 7949 yuan (approximately $1,110), which is a price discounted by more than 20% from the launch price (9999 yuan) last September. The base model iPhone15 (125GB) is also priced at 4599 yuan (approx. $640), a 23% drop from the launch price of 5999 yuan (approx. $840).
Apple’s price diminution in China began earlier this year when iPhone sales notably dwindled in the Chinese-speaking region. In mainland China, Hong Kong, and Taiwan, iPhone sales in the first quarter fell 8% from last year to $16.4 billion. According to market research firm Counterpoint, the iPhone’s smartphone market share in mainland China recorded 15.7% in the first quarter, a significant drop from last year’s (20.2%). As a result, Apple lost its market share ranking with local Chinese companies, such as Huawei, Vivo, and Honor.
In China, Apple also offers discounts of up to 800 yuan (approx. $111) on other products such as iPads, MacBooks, AirPods, and Apple Watches.
Further analysis is made that Apple’s discount drive is affecting recovery performance in China. According to data released by the China Academy of Information and Communications Technology (CAICT) earlier this month, overseas brand smartphone shipments in March increased by 12% compared to last year. Although the CAICT did not specify the name of a specific brand, the SCMP reported that Apple Inc. iPhones account for most overseas cell phones sold in mainland China.
Most Commented