Apple gives rare discount on iPhones in China – 01/15/2024 – Tech

Have you ever bought a new cell phone with a discount at the Apple store? For most people, the answer is no. This is because the company does not usually give discounts.

But in China, Apple is reducing the price of some of its latest iPhones by US$70, fearing that Chinese consumers have turned away from the brand.

That means about 6% to 8% off for the buyer, based on prices on Apple’s China website. The company also reduced US$112 (R$544) from the price of some MacBook Air notebooks. The promotion will begin on Thursday (18) and run until Sunday (21).

Reducing prices of high-end electronics for buyers in China is an unexpected move by Apple that highlights the challenges the American company faces in the country, where patriotic consumers are choosing domestic brands amid rising tensions with the United States.

Apple and its Chinese rival Huawei are on the front line of a technology battle between Beijing and Washington that has seen both countries restrict access to foreign technology.

Long wary of Huawei’s close ties to the Chinese government and worried that its technology could be used for espionage, U.S. officials have blocked federal agencies from buying Huawei equipment and tried to discourage other countries as well.

China, for its part, has issued guidelines for some of its government employees not to use iPhones at work and has encouraged domestic brands.

Trading barbs is not good for business. Apple has a lot to lose from rising tensions between the United States and China, a huge market that represents a fifth of its total revenue.

Total smartphone sales in China fell by around 3% in 2023 due to the country’s slowing economy. China is also the only major economy to enter deflation, as Chinese cut back on spending and domestic savings grow.

Huawei has taken aim at Apple’s market share in China, recently launching a smartphone with an improved camera, something Apple has always touted as a selling point.

Apple reported in November that its total sales in China had fallen 2.5%. The company reported declining sales for three quarters over the past year.

Discounts are not uncommon ahead of the Lunar New Year, which occurs next month and is one of the biggest shopping periods of the year in China.

Apple’s current promotion includes an image of a giant dragon made from iPhones, Apple Watches and AirPods, in reference to the upcoming year of the dragon in the Chinese zodiac.

The discounts sparked debate on Chinese social media this Monday (15).

“Apple will only reduce the price of its cell phones when the ones made here become more popular,” wrote a blogger known as Victorious Zhang Beihai. Another commenter wrote: “Still too expensive. I support home cell phones.”

Apple’s Lunar New Year promotion is “a move not commonly seen in the past,” said Toby Zhu, senior analyst at Canalys, a market research firm.

Canalys research indicates that Apple’s sales in China fell in the summer compared to 2022, but the company still holds about 66% of the high-end smartphone market in China.

Zhu added that the iPhone models on sale appear to have already sold out. Still, he added: “This indicates the challenges Apple is facing in the mainland China market.”