On May 15, 2024, an advertisement for Huawei Pura70 mobile phone can be seen in front of the Apple store on Nanjing Road Pedestrian Street in Shanghai, China.
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apple With China’s 618 Shopping Festival promotions underway, Apple is offering deep discounts on iPhones in China to boost sales amid fierce competition from local brands such as Huawei.
Chinese e-commerce marketplaces JD.com and Alibaba-owned Tmall have been selling select iPhone models at discounts of up to 20% since the 618 promotion began on Monday.
Apple’s 256GB iPhone 15 Pro Max is priced at 7,949 yuan ($1,120), lower than the original price of 9,999 yuan, and the discount is significantly higher than other models February report.
Tmall and JD.com are some of Apple’s sales channels in China, and they regularly promote discounts during the 618 Shopping Festival in the middle of the year.
According to Alibaba’s statement, this year’s event will include two sales periods from May 20 to May 28 and from May 31 to June 20.
Apple too The highest discount is 6100 yuan When Chinese buyers place a deal on an iPhone 11 or later, the deal will be on an iPhone 15, according to the company’s website.
Le Xu, an analyst at technology market research company Canalys, told CNBC that although the promotion coincides with the shopping holiday, the deep discounts may also be related to slowing iPhone sales.
“Following the first price cut in February, Apple made a second price cut in 2024 to boost sales and counter Huawei’s recovery,” he said, noting that previous price cuts had boosted sales momentum.
Since Chinese telecommunications company Huawei launched new smartphones late last year that use advanced chips, it has faced resistance in China, one of its largest markets, and the United States has sought to limit its access to those chips.
In the first three months of this year, Apple’s annual growth rate was 25%. Sales drop in ChinaCanalys data shows that its market share dropped from 20% to 15% during the same period.
Meanwhile, Huawei launched another iPhone challenger last month with the launch of a new range of high-end smartphones, the Pura 70.
However, despite a tough market in China and a 10% drop in global iPhone sales in the March quarter, the company managed to maintain investor confidence after reporting improved earnings and a massive share buyback in May.
Apple’s gross profit margin also expanded by 46.6% this quarter, thanks in large part to its growing services business, and the company expressed its expectations for revenue growth this quarter.
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