Apple's iPhone 15 series is being offered at steep discounts in China by resellers, pointing to a sustained dip in demand.
What Happened: Apple Inc.'s AAPL iPhone 15 Pro Max buyers can score discounts of up to 1,300 yuan ($180) on the original price on Alibaba Group Holding Ltd.'s BABA Tmall, reported Bloomberg.
This is a steeper drop than the approximately $120 discount offered on Apple’s smartphone lineup around the same time last year. Similar reductions are being observed on JD.com Inc.'s JD online platform.
Since its September launch, the latest iPhone generation has not lived up to the usual popularity of Apple’s flagship series in China. This is due to a mix of economic difficulties across the country and the unexpected resurgence of Huawei Technologies Co.'s smartphone business.
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“Apple is catching up with the ‘deflation' trend in China, intending to boost the demand for iPhones," said IDC analyst Will Wong.
Apple’s sales in China fell 13% to $20.8 billion in the quarter ended December, marking the company’s weakest performance for that period in the Asian nation in years.
The discounts surfaced after the Lunar New Year holiday, following rare price reductions on Apple's website in January. "Apple is offering a short-term promotional price to third-party channels as an early promotion for International Women's Day," said Ivan Lam of Counterpoint Research.
Why It Matters: This price reduction follows a series of events that have been affecting Apple’s market in China.
In January, Apple announced rare discounts on its latest iPhones in China, a move that was seen as a response to weakening demand for its flagship product.
Noted Apple analyst Ming-Chi Kuo reported in February that iPhone sales in China were off to a bad start in 2024, with sales declining between the beginning of 2024 through the Chinese Lunar New Year.
Adding to the competition, Chinese tech giant Huawei is reportedly preparing to launch its next flagship phone, the Mate 70 series, in September, positioning it as a strong contender against Apple's upcoming iPhone 16.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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