Apple Responds to Huawei’s Rise with iPhone Discounts in China

Apple has launched a four-day promotional discount on its iPhone models in China, running from January 4 to 7.

The discounts apply to a range of iPhone models and other Apple products when purchased through specific payment methods, including WeChat Pay and Alipay.

The flagship iPhone 16 Pro and iPhone 16 Pro Max, originally priced at 7,999 yuan ($1,093) and 9,999 yuan ($1,367) respectively, will see a 500-yuan ($68.50) reduction, while the iPhone 16 and iPhone 16 Plus will receive a 400-yuan discount.

Added to these, older iPhone models, MacBooks, and iPads are included in the promotion, with price cuts ranging between 200 and 300 yuan.

Recently, competition in China, the world’s largest smartphone market, has been on a high level, with domestic tech giants like Huawei addressing cautious consumer spending in a slowing economy.

Huawei has leveraged aggressive pricing strategies, such as discounts of up to 3,000 yuan on premium devices, to attract consumers. The company’s smartphone sales in China surged by 42% in the past year, while Apple had a 0.3% decline in the third quarter of 2024, according to IDC.

Again, China’s inflation reached a five-month low in November, weakening consumer confidence and prompting buyers to tighten their budgets. Apple’s premium pricing faces resistance in this environment, pushing the company to adopt flexible strategies like targeted discount campaigns.

Nonetheless, Apple seeks to stay resilient. The launch of its iPhone 16 on September 20, 2024, coincided with Huawei’s introduction of a tri-foldable phone, increasing the rivalry between the two tech giants.

Early sales data from Counterpoint Research showed a 20% increase in iPhone 16 sales during its first three weeks compared to the previous. This success helped Apple maintain its place among China’s top five smartphone brands, with a 15.6% market share as of Q3 2024, despite a slight year-on-year dip of 0.5 percentage points.

China’s smartphone market saw overall growth of 3.2% in Q3 2024, with total sales reaching 68.78 million units. While Apple remains the second-largest smartphone vendor in the country, Huawei’s innovative product launches have impacted the competition in the space.

The Apple discount initiative is a calculated move to attract price-sensitive consumers, bolster its market share, and strengthen its standing in the market.