Apple Cuts iPhone Prices in China as Huawei Gains Ground

Image Credit: Reuters

Apple is offering rare discounts of up to 500 yuan ($68.50) on its latest iPhone models in China, aiming to maintain its market share amid increasing competition from local rivals like Huawei.

The four-day promotion, running from January 4-7, applies to various iPhone models when purchased using specific payment methods, as listed on Apple's website.

The flagship iPhone 16 Pro, starting at 7,999 yuan, and iPhone 16 Pro Max, starting at 9,999 yuan, will receive the largest discount of 500 yuan. The iPhone 16 and iPhone 16 Plus will be discounted by 400 yuan.

These discounts come amid a cautious consumer spending environment, with China's economy slowing and consumer inflation hitting a five-month low in November.

Apple has been facing declining market share in China, the largest smartphone market, as domestic brands, particularly Huawei, ramp up competition. Huawei has regained ground in the premium segment since launching its own chipsets in August 2023, even cutting prices on high-end devices by up to 3,000 yuan.

Apple briefly fell out of the top five smartphone vendors in China in Q2 2024, but recovered in Q3. However, its sales in China still dipped 0.3% in Q3 compared to the previous year, while Huawei's sales rose by 42%, according to IDC.

The promotion also offers discounts of 200-300 yuan on older iPhone models, as well as on MacBook and iPad products. To qualify, customers must use designated payment methods like WeChat Pay or Alipay.

Paraphrasing text from "Reuters" all rights reserved by the original author.