Apple Gives Huge Discounts in China Ahead of Lunar New Year, Amid Rising Local Competition

Joseph Henry, Tech Times 15 January 2024, 11:01 am

Apple is unveiling substantial discounts on various products in China, with a notable focus on the latest iPhone lineup.

The tech giant is providing a 500 Chinese yuan ($70) reduction on its iPhone 15 series, encompassing even the premium iPhone 15 Pro Max. These exclusive offers are available from Jan. 18 to 21, strategically timed before the Lunar New Year festivities in mid-February.

Since many smartphone makers are becoming more competitive in China, Apple has to do a lot of work so many local customers would purchase its iPhones.

Rare Direct Discounts from Apple

Apple Gives Huge Discounts For iPhone 15 Series Ahead of Lunar New Year Amid Rising Local Competition — (Photo: Jayanth Muppaneni from Unsplash)
Amid the intense competition from Chinese smartphone makers, Apple is now offering discounts for its iPhones including the latest iPhone 15 series.

While it's customary for third-party retailers in China to offer discounts during holidays, Apple taking the initiative to provide direct discounts on its own retail channel is a rare occurrence.

According to CNBC, this addresses the rising competition that the iPhone maker faces in the Chinese market, not to mention the concerns regarding the low demand for its flagship phone.

Across-the-Board Savings on Mac Models and iPad

The discounted offerings extend beyond iPhones since Apple also launched discounts on select Mac models and iPads.

Apple's decision to slash prices on a variety of its coveted products indicates a proactive approach to capture consumer interest and maintain a strong market presence.

A Decline in iPhone Sales

Insights from analysts at Jefferies shared on Jan. 7, reveal a challenging scenario for Apple. The data indicates a significant 30% year-on-year decline in iPhone sales during the first week of the month.

Additionally, Jefferies notes a 3% year-on-year drop in iPhone sales in China throughout 2023. These declines are attributed to intensified competition from local giants such as Xiaomi and Huawei, renowned for their compelling high-end offerings.

Huawei's Resilience and Impact on Apple

Huawei's resilience in the face of U.S. sanctions is spotlighted, particularly with the launch of a groundbreaking smartphone featuring a high-end chip. This strategic move helped Huawei recover its standing in the Chinese smartphone market, a remarkable comeback following setbacks due to U.S. restrictions on its handset business.

Jefferies Analysis: Huawei's Influence on Apple's Sales

Jefferies analysts attribute Apple's iPhone sales decline last year in part to the success of Huawei's innovative device.

The formidable competition posed by Huawei's technological breakthroughs has evidently impacted Apple's market share in China, prompting the tech giant to reassess its strategies and engage in unprecedented direct discounts.

In another report by Reuters, Canalys' senior vice president of market research, Nicole Peng said that what Apple did was not surprising at all given that it is under pressure right now to improve its global sales.

What Peng noticed is that more local customers are growing reluctant to upgrade their current smartphones to the latest. This might be because of the pricing and willingness to purchase a new model.

"It is clear that Huawei is making a comeback. Some Chinese consumers may return to using Huawei as driven by patriotism," Peng said.

Elsewhere, an iPhone 16 leak we reported from November 2023 said that the upcoming smartphone will have a heatsink that will make it "literally cooler" than the iPhone 15.

Recently, another set of details appeared about the iPhone 16. It was mentioned in the report that the iPhone 16 Pro models will boast bigger screens than their predecessors. There will also be AI upgrades for the expected flagship lineup.