Apple Cuts iPhone 15 Prices In China By 20% As Demand Wanes 

May 20, 2024   |   Tags:
Apple Cuts iPhone 15 Prices In China By 20% As Demand Wanes 

Apple is offering steep iPhone discounts on several major e-commerce websites in mainland China to boost demand amid declining market share and waning interest as domestic brands make a strong comeback.

The South China Morning Post reports that the top-of-the-line 256-gigabyte iPhone 15 Pro Max model is now selling for 7,949 yuan (US$1,100) on Apple's official online stores on JD.com and Alibaba Group Holding's Tmall platform. This is down 2,050 yuan, or 20%, from its original retail price of 9,999 yuan. 

On JD.com and Tmall, the 128GB iPhone 15 model is offered at 4,599 yuan, down from its previous price of 5,999 yuan, or about a 23% discount. According to the two platforms, the sale runs for over a week. 

The sale comes after a report from International Data Corporation showed iPhone shipments plunged by 10% in the first quarter, pressured by slumping sales in China.

According to the IDC, Apple shipped 50.1 million iPhones in the first quarter, down 9.6% from the 55.4 million units shipped in the same quarter one year ago. Compared with other smartphone manufacturers in the report, the Cupertino, California-based company recorded the most significant year-over-year decline since Covid lockdowns disrupted supply chains in China in 2022. 

Since early January, institutional desks BarclaysPiper Sandlerand Jefferies have warned about a downturn in iPhone sales, mainly because of a slowdown in China. 

The competitive landscape in China has intensified since the unveiling of Huawei Technologies' 'Made-in-China' Mate 60 last fall, and, more recently, the 'Pura 70' model. These new offerings from Huawei have challenged Apple's market dominance and triggered a consumer shift towards domestic brands, further complicating Apple's position in the world's largest handset market. 

The bad news for Apple is that the Greater China region represents 19% of all its global sales in 2023. But nothing matters when the company unveils a record-breaking $110 billion buyback

The big picture is that Apple faces mounting pressure in China, mainly from Huawei. Also, Beijing's ban on iPhones from state-run companies and a "wave of patriotic buying" of domestic brands are awful news for Apple.

Tyler Durden Mon, 05/20/2024 - 09:40


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