Apple Goes on the Offensive as iPhone Sales Slip in Its Biggest Overseas Market

livemint.com:

Apple is offering rare discounts in China, including on its latest iPhones, in a bid to beat back growing competition in the high-end market from rivals. The tech giant is running a promotion from Thursday through Sunday in China in which it is cutting the price of iPhones by the equivalent of up to $70. Other products will be discounted by up to $110.

The promotion comes ahead of the weeklong Lunar New Year holiday beginning Feb. 10, a customary gift-giving season in China. In the last quarter of 2023, iPhone sales in China fell 11% compared with the same period a year earlier.

Ethan Qi, an analyst at market-research firm Counterpoint, linked the downturn to waning demand for smartphones in China and intensified competition from local rivals. In particular, Huawei is swiftly gaining ground despite grappling with U.S. sanctions.

“China remains a priority market for Apple, so it’s not common but also not a big surprise" to see the company fight to defend its market share, Qi said. The discount comes with some conditions, including the use of certain payment methods and limited quantity available at Apple’s 46 retail stores in China, according to the company. It didn’t mention any restrictions for online purchases, which is the main route for Chinese consumers to acquire a phone.

Apple didn’t advertise any discounts in Taiwan or Hong Kong, which celebrate the same holiday. The company typically doesn’t discount its latest iPhones, although a year ago it did offer some discounts on the iPhone 14 through certain sales channels in China. Apple faces an array of challenges in China, including Huawei’s resurgence and limits on government officials using iPhones.