iPhone 15 is expected to boom, and as usual, Apple's latest products are projected to shoot up in demand and sales. However, that's not the case for the next-gen smartphones in China.
Reports from Bloomberg suggest that Apple resellers in China are slashing prices on iPhone 15 models by up to $180, signaling an extended period of subdued demand.
Notably, Alibaba's Tmall is spearheading the effort to stimulate sales of these premium smartphones, offering discounts greater than the approximately $120 markdowns Apple provided around the same period last year.
Promotional Efforts Amid Market Challenges
These price reductions come in the wake of Apple's own rare discounts on its website before the Lunar New Year holiday in February.
At that time, the Cupertino firm slashed $70 so more people could afford to buy even the latest and most advanced iPhone 15 Pro Max models. The promo lasted for four days, from Jan. 8 to 21.
Following the festivities, Apple reverted to selling its iPhone 15 lineup at regular prices. The heightened promotional activities indicate challenges Apple's latest iPhone generation faces in achieving the same level of popularity enjoyed by its predecessors in the Chinese market.
Competition from Android Phones
The declining sales figures for Apple in China, which dropped by 13% to $20.8 billion in the quarter ending December, are attributed to the increasing allure of Android phones featuring generative AI capabilities.
Analysts anticipate this trend to persist and deepen throughout 2024. According to IDC analyst Will Wong, the pressure primarily emanates from Android vendors, with Apple witnessing a 10% year-on-year decline in sales, while Huawei experienced triple-digit growth during the same period.
Another thing that makes purchasing iPhone 15 difficult in China is the poor economy of the public, 9to5Mac reports. For people to be practical, they need to cut down on spending on other things and prioritize spending on necessities.
Is iOS 18 Coming For iPhone 16?
Apple's response to the market challenges includes the upcoming release of iOS 18, which is expected to introduce a range of new AI features. Additionally, rumors suggest that certain AI capabilities will be exclusive to the forthcoming iPhone 16 models.
However, the extent to which these features will impact market dynamics remains uncertain, raising questions about their potential to revitalize iPhone sales amidst the current slump.
While China observes a weak demand for iPhone 15, South Korea appears to have a different taste regarding smartphones.
In our previous report, the iPhone 15 was a big hit among South Koreans. Meanwhile, Japanese customers prefer the iPhone 13 Mini to the latest handsets.
