Why Apple offers rare iPhone discounts in China

Buyers in China are getting exceptional discounts on iPhones as Apple faces growing 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 newest phones.

Chinese phone maker Huawei has also reduced the prices of its high-end mobile devices by up to 20%.

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

The offer covers top Apple models, including the iPhone 16 Pro and iPhone 16 Pro Max, as well as older phones and some other devices.

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

“Apple’s strategy has changed to adapt to the change in Chinese consumers’ purchasing behavior,” said Will Wong, research manager at market intelligence firm International Data Corporation (IDC).

“The value-seeking trend has made price discounts more attractive to consumers. Apple may fall behind other competitors if it does not adopt that 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 attract customers who have been reluctant to spend as the world’s second-largest economy slows.

In this context, Apple’s share in the Chinese market has come under increasing pressure from local rivals, such as Vivo and Xiaomi.

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

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

During the same period, Apple saw its sales fall by 0.3%. Huawei’s jumped more than 40%.

“We have seen an increase in competition in the market and almost everyone launched a flagship last quarter,” said Ivan Lam, senior analyst at Counterpoint Research.

Huawei has seen demand for its products increase after its return to the premium smartphone market in August last year.

Since then, the Shenzhen-based company has launched several new devices with advanced technology even though the company faces restrictions in the United States.