Huawei Heats Up Competition As Apple Slashes iPhone 15 Prices By $70 For A Limited Time In China

In a surprising move, Apple Inc. AAPL has announced rare discounts on its latest iPhones in China, a decision that could be indicative of weakening demand for its flagship product.

What Happened: Bloomberg reported on Monday that Apple has introduced discounts of up to 500 yuan (approximately $70) on its most recent iPhone models in China. This concession has not been seen in several years.

The discounts were quietly unveiled on Apple’s official Chinese website on Monday. The offer is valid from Jan. 18 to Jan. 21, just before the Lunar New Year shopping season, and the reduction amounts to approximately 5% off the original price of the top-tier iPhone.

This move coincides with the growing favor for local brands such as Huawei Technologies Co. within China. State-backed agencies and companies are also increasingly being directed to shun foreign devices. Analysts say this has resulted in a notable decline in sales of Apple’s latest iPhone 15 in China.

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Jefferies has warned that the 2023 iPhone sales in China could have dropped by 30% following the launch of Huawei’s Mate 60 series, which is powered by a 7-nanometer processor made in China. This feat was celebrated by the Chinese media despite U.S. sanctions.

Apple’s retail partners in China have historically offered steeper discounts on the latest iPhones. While Apple typically reduces prices on its devices annually ahead of the Lunar New Year, this is the first time in years that it has extended these discounts to its latest iPhones.

Why It Matters: The decision to slash iPhone prices in China comes amid a series of challenges for Apple in the region. In October, the iPhone 15 Pro was reported to have the lowest 5-star rating since the iPhone 8, according to customer reviews. In November, it was also disclosed that the production cost of the iPhone 15 Pro Max had increased by 8% compared to its predecessor.

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Photo by Laurenz Heymann on Unsplash