With Apple now behind local smartphone makers in China, it needs to think of a strategy to stay afloat in the competition. Rolling out price cuts on its latest handset models could be the key to catching up with powerhouse Huawei.
The Cupertino titan is implementing substantial discounts on iPhone 15 models for consumers in mainland China. These price reductions, available on major online retail platforms, aim to stimulate sluggish sales in the world's largest smartphone market.
The 256-gigabyte iPhone 15 Pro Max, for instance, is now priced at 7,949 yuan (US$1,100) on Apple's official online stores on JD.com and Alibaba Group Holding's Tmall platform, a 20% reduction from its original price of 9,999 yuan.
iPhone Price Cuts Across Different Models
(Photo : Daniel Romero from Unsplash)
With Apple seeing a decline in iPhone sales in mainland China, the next move is to launch price cuts for the latest models to catch up with Huawei.
Aside from the abovementioned model, the basic 128GB iPhone 15 model has also seen a significant price cut, according to South China Morning Post. It now costs 4,599 yuan, down 23% from its previous price of 5,999 yuan. This promotional sale runs from May 20 to May 28 on both JD.com and Tmall, highlighting Apple's efforts to make these flagship products more accessible to Chinese consumers.
Related Article: Apple Falls in Chinese Smartphone Market as iPhone Shipments Slip to 5th
Price Stability on Apple's Official Store
Interestingly, Apple's official online store in mainland China has not adjusted its prices for the iPhone 15 models. The company has not provided any comments regarding this disparity. However, the aggressive discounts on major online platforms point out that the iPhone maker intends to boost domestic demand for all local consumers.
Apple Wants to Revive Low iPhone Sales in Greater China
The significant price cuts come in response to a notable decline in iPhone sales within the Greater China region - which includes mainland China, Hong Kong, and Taiwan.
Sales in this region dropped 8% to US$16.4 billion in the March quarter. This decline prompted Apple to take decisive measures to reinvigorate demand.
Apple is Imitating What Chinese Smartphone Makers Did
Apple's unusual discount strategy began in January, coinciding with price reduction campaigns by rival Chinese smartphone manufacturers like Xiaomi and Honor. These competitors offered significant discounts on their Android models, pushing Apple to adopt a similar approach.
In January, Apple provided discounts of up to 800 yuan through its mainland online store, covering a range of products including iPhones, iPads, MacBooks, AirPods, and the Apple Watch.
Despite Apple's efforts, the iPhone's share of the mainland Chinese smartphone market fell to 15.7% in the March quarter, down from 20.2% the previous year. This decline placed Apple behind Vivo, which captured 17.4% of the market, and Honor with 16.1%. Huawei Technologies also made a strong comeback with its 5G handset, the Mate 60 Pro, achieving a 15.5% market share.
Positive Impact of Discount Strategy
The recent discount initiatives appear to have had a positive effect on Apple's performance. Data from the China Academy of Information and Communications Technology showed a 12% increase in shipments of foreign-branded smartphones in March compared to the same period last year.
While the academy did not specify the brand, Apple remains the dominant foreign smartphone seller in China. Regardless, Huawei's supremacy lives on and it still eclipses the American firm in handset sales.
In other news, MacRumors noted that the February promotions seem to have helped Apple to counter the sales slump in China.
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