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Apple is offering rare discounts on its latest iPhone models in China in an apparent move to boost lacklustre sales. The iPhone 15 lineup is available at a discount of as much as $180 on Alibaba’s Tmall platform, as reported by Bloomberg. This is a much steeper discount than what was offered last year.
Analysts say the rare price cuts on new iPhones signal softening demand in China, Apple’s largest market outside the US Revenue from Greater China dropped 13% year-over-year last quarter. The economic slowdown in China and increased competition from domestic brands such as Huawei and Xiaomi have impacted iPhone sales.
“There is increasing evidence that steep iPhone discounts are being used in China to try to shore up weak demand,” said Jia Mo, an analyst with research firm Canalys.
“The scale of the price cuts, just months after launch, shows the pressure Apple is under in the market,” Mo added.
Steep discount on iPhone 15 Pro Max
The flagship iPhone 15 Pro Max is now selling for around $1,100 on Tmall after a $180 price cut, a significant reduction from its launch price of $1,280. JD.com and Pinduoduo, two other major Chinese online retailers, have also trimmed prices on iPhone 15 models by up to 16 percent.
Apple returned iPhone prices on its Chinese website to normal after temporary Lunar New Year deals in January. But third-party retailers have kept discounts in place amid inventory pile-ups. The iPhone 14 series saw similar discounts last year, but not until six months after launch.
“That mainstream channels have to offer such big discounts on a newly launched device indicates that demand has been weaker than expected,” said Nicole Peng, VP of Mobility at Canalys. “The economic slowdown in China, lengthening upgrade cycles, and the rise of capable mid-range devices are behind this decline.”
The disappointing iPhone demand comes as Apple tries to reduce reliance on China manufacturing. The iPhone maker had scored big in India the last year, making the country a bigger market than any of the individual European Union nations. Then, it has also been assembling the newest iPhone 15 models in India from day 0 amid political tensions and pandemic restrictions. However, China remains central to Apple’s supply chain and assembly operations.
Analysts say the rare price cuts on new iPhones signal softening demand in China, Apple’s largest market outside the US Revenue from Greater China dropped 13% year-over-year last quarter. The economic slowdown in China and increased competition from domestic brands such as Huawei and Xiaomi have impacted iPhone sales.
“There is increasing evidence that steep iPhone discounts are being used in China to try to shore up weak demand,” said Jia Mo, an analyst with research firm Canalys.
“The scale of the price cuts, just months after launch, shows the pressure Apple is under in the market,” Mo added.
Steep discount on iPhone 15 Pro Max
The flagship iPhone 15 Pro Max is now selling for around $1,100 on Tmall after a $180 price cut, a significant reduction from its launch price of $1,280. JD.com and Pinduoduo, two other major Chinese online retailers, have also trimmed prices on iPhone 15 models by up to 16 percent.
Apple returned iPhone prices on its Chinese website to normal after temporary Lunar New Year deals in January. But third-party retailers have kept discounts in place amid inventory pile-ups. The iPhone 14 series saw similar discounts last year, but not until six months after launch.
“That mainstream channels have to offer such big discounts on a newly launched device indicates that demand has been weaker than expected,” said Nicole Peng, VP of Mobility at Canalys. “The economic slowdown in China, lengthening upgrade cycles, and the rise of capable mid-range devices are behind this decline.”
The disappointing iPhone demand comes as Apple tries to reduce reliance on China manufacturing. The iPhone maker had scored big in India the last year, making the country a bigger market than any of the individual European Union nations. Then, it has also been assembling the newest iPhone 15 models in India from day 0 amid political tensions and pandemic restrictions. However, China remains central to Apple’s supply chain and assembly operations.
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