Apple is struggling against fierce competition from Huawei in China. To turn the tide, the company has implemented aggressive price cuts on iPhones in the country. This move aims to boost stagnant sales in the world’s largest smartphone market.
Apple Cuts Prices in China
Apple has significantly lowered prices on online retail platforms in China, such as JD.com and Tmall, in response to Huawei’s intense competition. Reports indicate that the high-end iPhone 15 Pro Max is now selling for 7,949 yuan (approximately $1,100) on these platforms, down from its original launch price of 9,999 yuan in September. This represents an aggressive 20% discount. The 128GB iPhone 15 model has also seen a price reduction to 4,599 yuan (about $635), marking a 23% discount. These discounts will be available on both online platforms until May 28.
Earlier in February, Apple initiated another discount campaign, but the current discounts are twice as significant. According to the China Academy of Information and Communications Technology (CAICT), these discounts are benefiting Apple. The February discounts led to a 12% increase in sales.
However, it is important to note that Apple’s sales in China fell by 37% in the first two months of the year. Additionally, Apple’s revenue from China in the first quarter dropped by 8%. Market analysis firm Counterpoint reported that Apple, which was the market leader last year, has now fallen to third place. Huawei, with a 69% increase in sales, is in fourth place, closely trailing Apple. The top spots are held by Vivo and Honor.
Huawei’s Continued Rise
Huawei’s upward trajectory is expected to continue in the second quarter. The company experienced significant growth last year with the Mate 60 series and recently introduced the highly anticipated Pura 70 series, which has been well-received.
What are your thoughts on Apple’s aggressive pricing strategy in China? Do you think it will help them regain market share? Share your opinions in the comments below!
