Why Apple is offering rare iPhone discounts in China

Shoppers in China are getting rare discounts on iPhones as Apple faces growing competition from local brands.

The four-day promotion, which starts this Saturday (4 January), includes discounts of as much as 500 yuan ($68.50, £55.30) on some of the US technology giant’s newest handsets.

Chinese phone maker Huawei has also cut prices of its high-complete mobile devices by as much as 20%.

The discounts arrive as consumers in China remain hesitant about spending because of the country’s economic challenges.

The propose covers Apple’s top models as well as older handsets and some other devices.

The biggest discount of 500 yuan will apply to Apple’s flagship iPhone 16 Pro, which has a starting worth of 7,999 yuan, and the iPhone 16 Pro Max which currently costs 9,999 yuan.

The firm held a similar promotion in China last year ahead of the Lunar recent Year holiday. This year, the celebration starts at the complete of January.

“Apple’s schedule has changed to adjust to the transformation in Chinese consumers’ shopping behaviour,” said Will Wong, a elder research manager for economy intelligence firm International Data Corporation (IDC).

“The worth-seeking pattern has made worth discounts more attractive to consumers. Apple may fall behind other competitors if it doesn’t adopt such a pricing schedule.”

The discounts being offered by Apple and Huawei reflect a wider pattern in China.

From online retail giants to the country’s car makers, deals are being offered in a bid to attract customers who have been reluctant to spend as the globe’s second largest economy slows.

The Chinese government has also stepped up efforts to boost consumption.

Last year, Beijing launched a trade-in programme to inspire consumers to replace ancient products such as cars and household appliances.

The schedule was expanded on Friday to include mobile phones, tablets, smartwatches and fitness bands.

Against this backdrop, Apple’s distribute of the Chinese economy has arrive under increasing pressure from local rivals, such as Vivo and Xiaomi.

The US firm re-entered China’s top five smartphone makers in the third quarter of 2024 after briefly dropping off the list.

According to IDC’s latest research, Vivo was China’s best-selling smartphone maker in the period as its sales jumped by more than 20%.

During the same period, Apple saw sales dip by 0.3%. Huawei’s jumped by more than 40%.

“We’ve seen economy competition boost with almost everyone launching a flagship last quarter,” said Ivan Lam, a elder analyst at Counterpoint Research.

Huawei has seen demand for its products surge after its profitability to the extra charge smartphone economy in August last year.

The Shenzhen-based firm has since launched several recent devices powered by advanced technology despite the business facing US restrictions.