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Apple Adopts Competitive Strategy In China: Slashes iPhone Prices by Up To 5%

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Apple Adopts Competitive Strategy In China: Slashes iPhone Prices by Up To 5%

Apple has responded to increasing competition in China’s smartphone market by reducing the prices of its iPhones by up to 500 yuan ($70). The company announced a 5% price cut on selected iPhone models on its Chinese website.

This move coincides with the upcoming Lunar New Year event, which will run from January 18 to January 21.

The sales of Apple’s latest iPhone 15 series have experienced a noticeable decline in China, with local rivals like Xiaomi and Huawei offering alternative options.

Additionally, there have been reports of companies and government entities limiting the use of APPL devices by their employees, similar to the U.S. government’s restrictions on certain Chinese apps due to security concerns.

Apple iPhone Sales Face Steep 30% Decline in Early 2024

Jefferies analysts have reported that Chinese iPhone sales experienced a significant decline of 30% during the first week of 2024 compared to the same period in the previous year.

This decline follows a 3% decrease in sales throughout the entirety of 2023. As a result, analysts anticipate heightened competition in the market this year.

For a considerable period, Apple has maintained the prices of its latest iPhone models without any reductions. However, the unexpected introduction of the iPhone 15 series in September brought about an unexpected change.

Since the beginning of the year, online sellers such as Pinduoduo have been offering discounts of up to 16% on the iPhone 15 and iPhone 15 Pro.

Nicole Peng, senior vice president of market research firm Canalys, stated that the discounts were anticipated due to Apple’s efforts to boost global sales, especially in China, where competition is intensifying and Apple loyalists are becoming more hesitant to upgrade.

Peng emphasized that Huawei is making a resurgence, and some Chinese consumers may switch back to using Huawei out of patriotic sentiments.

Canalys forecasts that Apple’s worldwide sales will stay steady this year, although there could be a slight decline in sales specifically in China.

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