Apple recently announced a promotion in the Chinese market, offering discounts of up to 500 Chinese yuan (around $68.50) on multiple iPhone models from January 4th to 7th amidst the continued economic downturn in China and cautious consumer spending behavior. The discounts apply to iPhone 16 series models purchased using specific payment methods like WeChat Pay or Alipay, with iPhone 16 Pro and iPhone 16 Pro Max eligible for a 500 yuan discount, and iPhone 16 and iPhone 16 Plus eligible for a 400 yuan discount. Additionally, Apple is offering varying discounts on certain older iPhone models, MacBook laptops, iPads, Apple Watches, AirPods, and Apple Pencils.
Compared to iPhones, the Mac series sees the highest discounts in this promotion, with up to an 800 yuan discount on the 15-inch MacBook Air. This promotional activity comes at a time when China’s economy is slowing down, inflationary pressures are increasing, and consumer purchasing enthusiasm is stagnant.
At the same time, Apple is facing challenges in the Chinese market with its market share under pressure. According to IDC data, in the third quarter of 2024, Apple’s smartphone sales in China dropped by 0.3% year-on-year, with a market share of 15.6%, while Huawei experienced a surge of 42% in sales, capturing a market share of 15.3%.
Over the past weekend, Huawei also lowered the prices of several high-end devices, including smartphones, on platforms like JD.com, with discounts of up to 3,000 yuan. Apple has traditionally refrained from offering discounts through its own retail channels, with third-party retailers typically providing promotions at specific times during the year. However, with intensifying competition, Apple is now leaning towards introducing promotional policies.
A report from market research consultancy firm Counterpoint Research released on November 20, 2024, revealed that during China’s ‘Double 11’ shopping festival in 2024, Apple experienced a double-digit decline in iPhone sales year-on-year due to fierce competition. Meanwhile, Huawei significantly reduced prices of its Pura 70 series, Mate 60 series, and Nova 13 series devices, leading to a 7% increase in sales. Nevertheless, iPhone 16 Pro and iPhone 16 Pro Max remained the best-selling models during the two-week shopping festival.
Overall, despite the promotional activities, the sluggish Chinese economy has dampened consumer enthusiasm. Counterpoint Research’s report indicates that smartphone sales in China during the two-week ‘Double 11’ shopping festival period declined by 9% year-on-year.