Apple Offers Rare Discounts In China Amid Rising Competition

Beijing: Apple, the best known for its consumer electronics, software and services, is offering discounts of up to 500 yuan (Rs5,876) on its latest iPhone models in China, marking a rare move by the U.S. tech giant to defend its market share against increasing competition from domestic rivals like Huawei.

According to reports, there will be a four-day promotion running from January 4 to January 7, which applies to multiple iPhone models and requires purchases through specific payment methods, including WeChat Pay and Alipay. According to Apple’s website, the flagship iPhone 16 Pro, starting at 7,999 yuan (Rs 94,000), and the iPhone 16 Pro Max, priced at 9,999 yuan (Rs 1,17,508), will receive the highest discount of 500 yuan (Rs 5,876). Meanwhile, the iPhone 16 and iPhone 16 Plus will be discounted by 400 yuan (Rs 4,700).

Apple Faces Competition In China’s Smartphone Market

The campaign comes as consumer spending in China slows amid economic challenges, including deflationary pressures and weak inflation, which hit a five-month low in November. Apple faces intensifying competition in China’s smartphone market, the world’s largest, where local brands like Huawei have gained ground.

Huawei, which re-entered the premium smartphone segment in August 2023 with locally developed chipsets, has been a particularly strong competitor. The Chinese tech giant recently slashed prices on several high-end models by up to 3,000 yuan (Rs 35,250) during a weekend sale on a major e-commerce platform.

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Apple, which briefly dropped out of China’s top five smartphone vendors in the second quarter of 2024, managed a recovery in the third quarter. However, its smartphone sales in China declined 0.3 per cent year-on-year during that period, while Huawei’s sales soared by 42 per cent, according to IDC data.

Additionally, the current promotion also includes discounts of 200 to 300 yuan (Rs 2,350 to Rs 3,525) on older iPhone models, as well as reductions on MacBook laptops and iPad tablets.