Apple lowers iPhone prices in China amid demand concerns.
Apple is offering rare discounts on iPhone prices in China, reducing retail prices by 500 yuan (about $70) amid increasing competitive pressures in the world's largest smartphone market.
The company's Chinese website today showed that the American tech giant has reduced prices on some iPhones by 5 percent.
External retailers in China sometimes offer discounts on iPhones during holidays, although it is very rare for Apple to do so through its retail channels.
The limited-time promotional offer, called the Lunar New Year event, runs from January 18 to January 21 in the lead-up to the mid-February holiday.
Sales of the iPhone 15 series are suffering a significant decline in China compared to previous series. Local competitors are offering competitive models, such as Huawei and Xiaomi.
Sources told Reuters that some companies and government agencies are limiting the use of Apple devices by employees, reflecting the restrictions imposed by the US government on Chinese apps for security reasons.
Analysts said that Chinese iPhone sales dropped by 30 percent in the first week of 2024 compared to the same period the previous year, after a 3 percent decrease throughout 2023.
Analysts expect the competitive landscape to become more challenging this year. Apple has not lowered the prices of its latest iPhones for years.
The reductions come after the market was surprised by Apple not raising prices for the iPhone 15 series when it was launched in September.
Online shopping platforms, such as Pinduoduo, have lowered the prices of the iPhone 15 and iPhone 15 Pro by 16 percent since the beginning of the year.
Nicole Peng, vice president of market research company Canalys, said the reductions were not surprising as Apple is under pressure to boost sales globally, especially in China, amid intense competition and increasing reluctance among Apple fans to upgrade.
Peng added, "It is clear that Huawei is making a comeback, and some Chinese consumers may return to using Huawei devices out of patriotism."
Canalys expects Apple's sales to remain steady worldwide this year, while it may experience a slight decline in China.
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