Apple is cutting iPhone prices in China by $68: Stock drops 2.6%

Apple China has announced a promotional campaign called ‘New Year Surprises,’ offering discounts up to ¥800 on select products from January 4 to January 7, 2025.

Eligible customers can receive savings with a limit of two items per product category. The promotion also includes trade-in discounts for upgrading to a new iPhone. Apple stated that discounts are applicable both online and in retail stores, but supplies are limited.

The inventory for the promotion includes 29,300 iPhones, 3,500 iPads, 530 Mac laptops, 8,350 Apple Watches, 2,590 AirPods, and 940 Apple Pencils. Apple emphasized that once stock is depleted, the promotional pricing will no longer be available. This announcement prompted discussions among recent Apple customers, many expressing frustration over not being able to take advantage of the discounts.

In response to customer inquiries about price adjustments, Apple’s customer service clarified that products purchased within 14 days prior to the promotion are eligible for returns and repurchases at the discounted price. This workaround is not a formal price adjustment but provides recent buyers with an opportunity to save.

This promotion follows a similar strategy observed during the ‘Double 11’ shopping festival in November 2024, when Apple offered RMB500 vouchers on the iPhone 16 series shortly after its launch. Apple’s recent discounts on both new and older models are viewed as a response to growing competition from domestic manufacturers like Huawei, which has recently reduced prices on its premium smartphones.

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Apple faces significant sales pressure in the Chinese market, where economic challenges have led consumers to spend less. In the second quarter of 2024, Apple briefly fell out of the top five smartphone brands but regained its position later in the year, despite witnessing a year-on-year decline in sales. Meanwhile, Huawei’s sales surged by 42%, reflecting increased competition in the smartphone sector.

Analysts suggest that the pricing strategies by Apple and competitors like Huawei aim to attract consumers who are more value-conscious amid shifting shopping behaviors in China. Apple’s market share has been further challenged by the introduction of locally manufactured chips by Huawei, which has strengthened its position in the premium segment.

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