Growing competition prompts Apple to reduce prices of iPhone 15 series in China

Apple is offering rare discounts on its iPhones in China, cutting retail prices by up to 500 yuan ($70) amid growing competitive pressure in the world’s biggest smartphone market.

The US tech giant cut the prices of some iPhones by 5 percent, its Chinese website showed on Monday. Labeled as the Lunar New Year event, the limited-time promotion runs from January 18 to January 21 until the mid-February holiday.

Sales of Apple’s latest iPhone 15 phones have been much worse in China than previous models.

Domestic rivals such as Huawei Technologies and Xiaomi offer competitive models, while sources have said some companies and government departments have restricted employees from using Apple devices – mirroring the US government’s restrictions on Chinese apps for security reasons.

Chinese iPhone sales fell 30% in the first week of 2024 compared to the same period a year earlier, Jefferies analysts said in a client note. Analysts expect the competitive situation to tighten this year.

Apple hasn’t lowered the prices of its latest iPhones in years. The cuts come after it surprised the market by not raising the prices of the iPhone 15 series when it launched in September.

Online shopping platforms, including Pinduoduo, have reduced iPhone 15 and iPhone 15 Pro prices by up to 16% since the beginning of the year.

Nicole Peng, executive vice president of market research firm Canalys, said the discounts did not come as a surprise as Apple is under pressure to increase sales globally, and especially in China, amid intensifying competition and a growing reluctance among Apple fans to upgrade.

“It is clear that Huawei is making a comeback,” Peng said, “some Chinese consumers may return to using Huawei driven by patriotism.”

Canalys expects Apple’s sales this year to remain unchanged worldwide, although in China it will decrease slightly.

Apple did not respond to a request for comment.