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Getty ImagesBuyers in China are getting rare discounts on iPhones 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 are indecisive about spending due to the country’s economic woes.
The offer applies to Apple’s top models, including the iPhone 16 Pro and iPhone 16 Pro Max, as well as older phones and some other devices.
The firm held a similar promotion in China last year on the eve of the Lunar New Year holiday. This year the festival starts at the end of January.
Behavior change
“Apple’s strategy has changed to adapt to changes in the purchasing behavior of Chinese consumers,” said Will Wong, senior manager of market research at 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 such a pricing strategy.”
The discounts offered by Apple and Huawei reflect a broader trend in China.
From online retail giants to car makers, the country is offering deals to attract customers reluctant to spend as the world’s second-largest economy slows.
Local competition
Against this backdrop, Apple’s Chinese market share has come under increasing pressure from local rivals such as Vivo and Xiaomi.
The American firm has re-entered the top five smartphone makers in China in the third quarter of 2024 after briefly dropping off the list.
According to the latest IDC research, Vivo was the best-selling smartphone manufacturer in China during this period as its sales jumped by more than 20%.
During the same period, Apple’s sales fell by 0.3%. Huawei jumped more than 40%.
“We saw increased competition in the market when almost everyone launched a flagship 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 last August.
Since then, the Shenzhen-based company has released several new devices powered by advanced technology despite the US restrictions.
