Why is Apple officially reducing prices of iPhone 15 in China?

For the first time in many years, Apple is officially reducing the prices of new iPhones in China. This comes amid growing competitive pressure in the world's largest smartphone market, with the company fearing a drop in demand.

As reported by Bloomberg, Apple has reduced the prices of some iPhones in China by 5%, but the promotion is limited in time - it will last from January 18 to 21, that is, during the sales season before the Chinese New Year. The discount will be 500 yuan, which is approximately $70.

Interestingly, the company has not reduced prices during the Chinese New Year for many years in a row. However, sales of the iPhone 15 in China turned out to be much worse than previous models, apparently, this prompted the company to think about discounts.

Why are iPhones selling poorly in China? First of all, local competitors such as Huawei and Xiaomi offer competitive models (the Huawei Mate 60, for example, had a very successful home release), and companies and government departments are restricting the use of Apple devices by employees. As a result of all this, iPhone sales in China fell 30% in the first week of 2024 compared to the same period a year earlier. And over the past year the drop was 3%. Moreover, analysts expect the competitive environment to become even tougher for Apple this year.

Nicole Peng, senior vice president at research firm Canalys, said the discounts were not a surprise as Apple is under pressure, especially in China, amid increased competition and growing reluctance among Apple fans to upgrade.

According to Peng, it is clear that Huawei is making a comeback, and some Chinese consumers may return to using Huawei out of patriotism.

Apple also made a discount of 800 yuan (more than $110) on the new MacBook Air model.