Buyers in China are getting rare discounts on iPhones as Apple faces increasing competition from local brands.
The four-day promotion, which starts this Saturday (January 4), includes discounts of as much as 500 yuan ($68.50, £55.30) on some of the US tech giant’s latest devices.
Chinese phone manufacturer Huawei has also reduced the prices of its high-end mobile devices by as much as 20%.
The discounts come as consumers in China remain hesitant to spend due to the country’s economic challenges.
The offer covers Apple’s top models, including the iPhone 16 Pro and iPhone 16 Pro Max, as well as older phones and some other devices.
The company held a similar promotion in China last year ahead of the Lunar New Year. This year the festival starts at the end of January.
Behavior change
“Apple’s strategy has changed to accommodate the changing purchasing behavior of Chinese consumers,” said Will Wong, senior research manager at market research firm International Data Corporation (IDC).
“The value-seeking trend has made price discounts more attractive to consumers. Apple could fall behind other competitors if it does not adopt such a pricing strategy.”
The discounts offered by Apple and Huawei reflect a broader trend in China.
From online retail giants to domestic automakers, deals are being offered in a bid to lure shoppers who have been reluctant to spend as the world’s second-largest economy slows.
Local competition
In this context, Apple’s share of the Chinese market is under increasing pressure from local rivals such as Vivo and Xiaomi.
The US company has re-entered the top five smartphone makers in China in the third quarter of 2024 after briefly falling off the list.
According to the latest research from IDC, Vivo was the best-selling smartphone maker in China during that period as its sales jumped by more than 20%.
During the same period, Apple saw sales decline by 0.3%. Huawei jumped more than 40%.
“We saw an increase in market competition with almost every flagship product launch last quarter,” said Ivan Lam, senior analyst at Counterpoint Research.
Huawei has seen an increase in demand for its products since its return to the premium smartphone market in August last year.
The Shenzhen-based company has since launched several new devices powered by the advanced technology despite the company facing US restrictions.
