Apple Takes a Bite Out of Competition with Exclusive Discounts in China
As the Chinese New Year approaches, Apple is pulling out all the stops to stay ahead of the competition in one of its most crucial markets. The tech giant is offering exclusive discounts on its top-end iPhones and other products, a move that marks a significant shift in its pricing strategy.
Discounts Galore
For a limited time, customers in China can enjoy discounts of up to 500 Chinese yuan ($68.50) on the iPhone 16 Pro or iPhone 16 Pro Max, and 400 yuan off the iPhone 16 or iPhone 16 Plus. Additionally, Apple is offering deals on the iPhone 14 and iPhone 15, making it an attractive time to upgrade or purchase a new device.
A Change in Strategy
Historically, Apple has resisted offering discounts through its own retail channels, instead relying on third-party retailers to provide deals. However, with competition heating up, the company has become more inclined to post seasonal deals. This move is seen as a response to the growing threat from domestic brands, particularly Huawei.
The Rise of Huawei
Huawei, once the world’s number one smartphone player, has made a remarkable comeback since the latter half of 2023. Despite U.S. sanctions crippling its handset business, the company has aggressively launched new devices containing chips that were thought to be difficult to produce due to U.S. restrictions. As a result, Huawei’s shipments have jumped 24% year-on-year, with its market share hitting 16% from 13% a year earlier.
Apple’s Market Share Slips
In contrast, Apple’s smartphone shipments fell 6% year-on-year in mainland China in the third quarter of 2024, according to Canalys. The company’s market share also slipped to 14% from 16% a year earlier. This decline is a clear indication that Apple needs to adapt to the changing market landscape.
A Battle for Dominance
The discounts offered by Apple are a clear attempt to regain ground in the Chinese market. With Huawei and other domestic brands gaining traction, Apple must find ways to stay competitive. As the Chinese New Year approaches, it will be interesting to see how these discounts impact Apple’s sales and market share. One thing is certain – the battle for dominance in the Chinese smartphone market is heating up.
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