Apple has started giving special discounts on iPhones in China. Apple has made this concession due to increased competition from local brands in the country.
The tech giant is offering discounts of up to 500 yuan (about $68.50 or £55.30) on select iPhone models in a four-day promotion starting January 4.
Meanwhile, Chinese phone maker Huawei has also slashed the prices of its high-end smartphones by up to 20 percent. Consumers are cutting back on spending and reducing their purchases due to economic challenges in the country.
Apple's promotion will include the company's best models as well as older handsets and some other devices.
Apple's flagship iPhone 16 Pro model will be discounted up to 500 yuan. Its price is 7 thousand 999 yuan and the current price of iPhone 16 Pro Max is 9 thousand 999 yuan.
Last year, Apple held a similar promotion in China ahead of the Lunar New Year holiday. This year the Lunar New Year festival will begin at the end of January.
“Apple's strategy has changed to adapt to the changing shopping behavior of Chinese consumers,” said Will Wong, senior research manager at International Data Corporation (ICD).
The concessions by Apple and Huawei reflect a broader trend in China.
From online retail giants to the country's automakers, various discounts are being offered in China to attract buyers. Such campaigns have increased, particularly in China, the world's second-largest economy, due to economic slowdown and contraction in consumer spending.
Last year, Beijing launched a trade-in program, encouraging consumers to trade in old goods (such as cars, home appliances, etc.) for new ones.
In this context, Apple's market share in China is facing increasing pressure from local rivals such as Vivo and Xiaomi.
After dropping off the list for a while in the third quarter of 2024, Apple has made its way into China's top five smartphone makers.
According to ICD's latest research, China's best-selling smartphone brand during that period was Vivo, with sales up more than 20 percent.
At the same time, Apple's sales fell by 0.3 percent. On the other hand, Huawei's sales increased by more than 40 percent.
Evan Lam, senior analyst at Counterpoint Research, said, 'Last quarter we saw the market competition increase and almost all brands released their flagship phones in the market.'
After Huawei returned to the premium smartphone market in August last year, the demand for its products has increased tremendously. Despite the ban in the US, the company has brought some new devices to the market. Advanced technology is used in these.
References: BBC
