Why Apple is offering rare iPhone discounts in China

Buyers in China are getting rare iPhone discounts as Apple faces increasing competition from local brands.

The four-day promotion, which starts this Saturday (January 4), includes discounts of up to 500 yuan ($68.50, £55.30) on some of the US tech giant’s latest phones.

Chinese phone maker Huawei has also slashed the prices of its high-end mobile devices by as much as 20%.

The discounts come as consumers in China remain hesitant to spend due to the country’s economic challenges.

The offer covers Apple’s best models, as well as older phones and some other devices.

The biggest discount of 500 yuan will apply to Apple’s flagship iPhone 16 Pro, which has a starting price of 7,999 yuan, and the iPhone 16 Pro Max, which is currently priced at 9,999 yuan.

The company ran a similar promotion in China last year ahead of the Lunar New Year holiday. This year the festival started at the end of January.

“Apple’s strategy has changed to adapt to the changing shopping behavior of Chinese consumers,” said Will Wong, senior research manager for market research firm International Data Corporation (IDC).

“The trend towards value has made price discounts more attractive to consumers. Apple may fall behind other 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 reluctant to spend as the world’s second-largest economy slows.

Against this background, Apple’s share of the Chinese market is under increasing pressure from local rivals such as Vivo and Xiaomi.

The American firm re-entered China’s top five smartphone makers in the third quarter of 2024 after briefly falling off the list.

According to the latest IDC survey, Vivo was the best-selling smartphone maker in China during the period as its sales jumped more than 20%.

In the same period, Apple’s sales fell 0.3%. Huawei jumped more than 40%.

“We’ve seen market competition intensify with almost everyone releasing a flagship in the last quarter,” said Ivan Lam, senior analyst at Counterpoint Research.

Huawei has seen a surge in demand for its products since its return to the premium smartphone market in August last year.

The Shenzhen-based firm has since released several new devices powered by advanced technology, even as the company faces US restrictions.