BEIJING (Reuters) – Apple is currently offering rare discounts of up to 500 yuan ($68.50) on its latest iPhone models in China as part of a strategic move to defend its market share against increasing competition from domestic rivals like Huawei. The promotional campaign, lasting from Jan. 4-7, is applicable to several iPhone models if purchased using specific payment methods, as indicated on the company’s official website.
Among the discounted models are the flagship iPhone 16 Pro, which has a base price of 7,999 yuan, and the iPhone 16 Pro Max, starting at 9,999 yuan, both of which are eligible for the highest discount of 500 yuan. Additionally, the iPhone 16 and iPhone 16 Plus will each receive a discount of 400 yuan.
These discounts come at a time when consumers are displaying a cautious approach to spending due to China’s slowing economy and deflationary pressures, with the nation’s consumer inflation hitting a five-month low in November. Apple has been facing challenges with a declining market share in China, the world’s largest smartphone market, as local manufacturers intensify competition.
Huawei, in particular, has emerged as a formidable competitor since reentering the premium segment in August 2023 with domestically-produced chipsets. Over the weekend, Huawei significantly reduced prices of various high-end devices, including mobile phones, by up to 3,000 yuan on a popular Chinese e-commerce platform.
Apple experienced a brief drop out of the top five smartphone vendors in China during the second quarter of 2024 before recovering in the subsequent quarter. Nonetheless, the U.S. company’s smartphone sales in China declined by 0.3% in the third quarter compared to the same period the previous year, while Huawei’s sales surged by 42%, as reported by research firm IDC.
In addition to the iPhone models, the Apple promotion extends to discounts of 200 to 300 yuan on older iPhone versions, as well as other product categories such as MacBook laptops and iPad tablets. To be eligible for the discounts, customers are required to use specified payment methods including WeChat Pay or Alipay.
The current exchange rate stands at $1 being equivalent to 7.2992 Chinese yuan renminbi. This promotional initiative by Apple is a strategic response to the competitive landscape in China and aims to bolster the company’s position in the market.
(Reporting by Liam Mo and Brenda Goh; Editing by Jamie Freed)
