Apple’s latest iPhones face steep price cuts in China as retailers scramble to boost disappointing sales. Major e-commerce platforms including JD.com and Tmall have slashed prices by up to 1,500 yuan ($207) on iPhone 15 models. This marks the second round of significant discounts this year in Apple’s third-largest market.
The price reductions reveal growing challenges for the tech giant in China. Local competitors like Huawei continue gaining market share with advanced features and nationalist appeal. The iPhone 15 Pro Max, Apple’s premium model retailing at 9,999 yuan ($1,380), now sells for about 8,500 yuan ($1,173) on some platforms – a 15% discount rarely seen on flagship Apple products.
“These unusual discounts indicate retailers are sitting on excess inventory,” says Ming-Chi Kuo, a respected Apple analyst at TF International Securities. “Consumer demand has weakened considerably compared to previous iPhone launches.”
Recent data from market research firm Canalys shows Apple’s market share in China dropped to 15.7% in the first quarter of 2024, down from 19.7% a year earlier. Meanwhile, Huawei’s share jumped to 15.5% from 9.3% during the same period, nearly catching Apple despite facing U.S. sanctions.
Chinese consumers increasingly favor domestic brands for both technological and patriotic reasons. The Huawei Mate 60 Pro, launched last year with an advanced China-made chip, became a symbol of national technological achievement amid U.S.-China tensions. This sentiment has created headwinds for American tech companies like Apple.
Economic factors also contribute to Apple’s struggles. China’s post-pandemic recovery has been uneven, with youth unemployment remaining high and consumer confidence still below pre-pandemic levels. Many shoppers are becoming more price-sensitive, making Apple’s premium positioning a tougher sell.
“Chinese consumers are increasingly sophisticated and value-conscious,” explains Chen Wei, retail analyst at Shanghai-based consultancy China Market Research Group. “They’re questioning whether Apple’s ecosystem advantages justify the price premium over domestic alternatives that often offer more cutting-edge features.”
Apple’s response has focused on expanding services and manufacturing in China. The company recently announced plans to increase investments in Chinese developer programs and AI research centers. CEO Tim Cook visited Beijing in March to meet with government officials and suppliers, emphasizing Apple’s commitment to the Chinese market.
Industry observers remain divided on Apple’s prospects in China. “These discounts might help clear inventory, but they also risk devaluing the premium brand image Apple has carefully cultivated,” says Sarah Yeh, technology analyst at Bernstein Research. “The company needs to address the innovation gap perceived by Chinese consumers.”
The timing is particularly concerning as Apple prepares to launch its iPhone 16 series later this year. The company typically sees sales of current models slow ahead of new releases, but the steep discounts suggest retailers are more worried than usual about clearing existing stock.
Chinese social media platforms show mixed consumer reactions. Some view the discounts as an opportunity to enter Apple’s ecosystem at a lower price point. Others see it as confirmation that domestic brands offer better value. “Why buy Apple when Huawei gives more features for the same price?” wrote one user on Weibo, China’s Twitter-like platform.
Apple faces similar challenges in other emerging markets, though the dynamics in China are unique given its economic importance and complex geopolitical relationship with the United States. The company’s global strategy increasingly depends on services revenue growth as hardware sales plateau.
For Chinese consumers, the price cuts represent a rare opportunity to purchase Apple products at significant discounts. Whether this will help Apple regain momentum or further erode its premium positioning remains to be seen as the competitive landscape continues evolving rapidly in the world’s largest smartphone market.
