A few iPhone models have been available for as much as 20% less on Chinese e-commerce platforms JD.com and Alibaba’s Tmall since the 618 festival promos began on Monday
After being reduced from 9,999 yuan to 7,949 yuan (US$1,120), Apple’s 256-gigabyte iPhone 15 Pro Max was being sold for a far higher price than those that were first reported in February.
The significant reductions are probably related to declining iPhone sales even though the deals are timed to coincide with the shopping season, according to Le Xuan Cheiw, an analyst at technology industry research firm Canalys.
Amid fierce competition from local companies like Huawei, Apple is attempting to increase sales in China by giving substantial discounts on iPhones in conjunction with the start of the nation’s 618 shopping holiday.
Since the 618 festival promotions began on Monday, a few iPhone models have been offered at discounts of up to 20% on Chinese e-commerce platforms JD.com and Alibaba’s Tmall.
During the mid-year 618 shopping festival, Apple’s sales channels in the country, including Tmall and JD.com, routinely provide discounts.
Alibaba said in a statement that there will be two sales periods for this year’s event: May 20–May 28 and May 31–June 20.
Apple’s Trade-In Deals Boost iPhone 15 Sales in China
On its website, Apple states that Chinese customers who trade in their iPhone 11 or later models can receive discounts on the iPhone 15 of up to 6,100 yuan.
According to Le Xuan Cheiw, an analyst at technology industry research firm Canalys, the significant discounts are probably related to decreasing iPhone sales, even though the promotions coincide with the shopping season, as CNBC reported.
He stated that past price reductions had increased sales momentum. “Apple’s second price cut in 2024, following the first in February, aims to boost sales and counteract Huawei’s resurgence,” he added.
Since Chinese telecoms company Huawei unveiled new smartphone models late last year that included cutting-edge technology that the U.S. had attempted to prevent the company from accessing, the company has been facing difficulties in China, one of its biggest markets.
As per Canalys data, Apple’s sales in China decreased by 25% in the first three months of this year compared to the same period last year. During that same period, the company’s market share decreased from 20% to 15%.
As for the iPhone, Huawei debuted the Pura 70, a new line of high-end smartphones, last month, posing a threat to Apple.
All the same, the corporation has kept investor confidence after outperforming expectations on results and buying back a significant amount of stock earlier this month, even in the face of challenges in China and a 10% drop in iPhone sales globally in the March quarter.
With the company indicating revenue growth in the current quarter, Apple also increased its gross profit margin by 46.6% during the quarter, largely due to the expansion of its services division.
