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US tech giant cuts prices in China amid growing competition from local rivals like Huawei
Chinese buyers get rare discounts on iPhones as Apple faces growing competition from local brands.
The four-day promotion, which begins this Saturday, January 4, includes discounts of up to 500 yuan ($68.50, £55.30) on some of the US tech giant’s newest devices.
Chinese phone maker Huawei has also slashed prices of its premium mobile devices by up to 20%.
These reductions come as Chinese consumers are still hesitant to spend due to the country’s economic challenges.
The deal covers Apple’s top models, including the iPhone 16 Pro and iPhone 16 Pro Max, as well as older handsets and select other devices.
The company ran a similar promotion in China last year, ahead of the Lunar New Year holiday. This year, the festival begins at the end of January.
Change behavior
“Apple’s strategy has changed to accommodate the changing purchasing behavior of Chinese consumers,” said Will Wong, senior research director for market intelligence firm International Data Corporation (IDC).
“The value-seeking trend has made price reductions more attractive to consumers. Apple could fall behind its 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 the country’s automakers, deals are being offered in a bid to lure customers who are reluctant to spend as the world’s second-largest economy slows.
Local rivals
In this context, Apple’s Chinese market share is under increasing pressure from local competitors, such as Vivo and Xiaomi.
The American company re-entered the top five Chinese smartphone makers in the third quarter of 2024 after briefly disappearing from the list.
According to the latest research from IDC, Vivo was the best-selling smartphone maker in China during this period, with its sales jumping by more than 20%.
During the same period, Apple saw its sales decline by 0.3%. That of Huawei jumped by more than 40%.
“We have seen market competition intensify with almost everyone launching a flagship product last quarter,” said Ivan Lam, principal analyst at Counterpoint Research.
Huawei saw demand for its products increase after returning to the high-end smartphone market in August last year.
The Shenzhen-based company has since launched several new devices powered by cutting-edge technology despite US restrictions.
