Apple Inc. AAPL has initiated a significant price reduction for its iPhone models in China, as it faces mounting competition from local rivals like Huawei Technologies Co.
What Happened: Apple has launched a substantial discounting campaign on its official Tmall site in China, offering discounts of up to $318 (CNY 2,300) on select iPhone models, reported Reuters.
This move comes as Apple seeks to maintain its position in the high-end smartphone market, where it is facing increased competition from local players such as Huawei.
The discounting campaign, which runs from May 20 to May 28, is more substantial than the one Apple offered in February.
The highest discount in the February campaign was $159, but this time, discounts are up to $318. The steepest discount applies to the 1TB iPhone 15 Pro Max model, while other models also see significant price cuts.
Apple’s previous discounting effort in February appears to have helped the company mitigate a sales slowdown in China. Apple’s shipments in China increased by 12% in March, according to Reuters’ calculations based on data from the China Academy of Information and Communications Technology (CAICT).
Even then, Apple’s iPhone 16 launch in September is expected to be countered by Huawei with its Mate 70 series.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Why It Matters: This increased competitive pressure on Apple comes after Huawei introduced its new series of high-end smartphones, the Pura 70, last month, following the launch of the Mate 60 last August.
Apple’s recent struggles in China have been well-documented. The company’s CEO, Tim Cook, even made a high-profile visit to China in March to reassure the Chinese government of Apple’s commitment to the market.
Despite the challenges, some analysts, such as Dan Ives from Wedbush, have expressed optimism about Apple’s future in China. However, the recent launch of the Pura 70 series by Huawei has added to Apple’s woes in the region.
Price Action: Apple's shares were trading 0.71% lower in premarket trading on Monday, after closing at $189.87 on Friday, according to Benzinga Pro.
Check out more of Benzinga's Consumer Tech coverage by following this link.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
