Apple Forced to Sell Phones at Lower Prices, All iPhone Models Witness a Sharp Drop in Cost Here

Apple Forced to Sell Phones at Lower Prices, All iPhone Models Witness a Sharp Drop in Cost Here
Apple Forced to Sell Phones at Lower Prices, All iPhone Models Witness a Sharp Drop in Cost Here

On Monday, May 20, 2024, Reuters reported that Apple has significantly reduced prices on its iPhones in China. This price drop is part of a major discount campaign on Apple’s official website, Tmall. The American tech giant is offering discounts of up to 2,300 yuan, approximately 26,485 rupees, on various iPhone models.

Apple’s current sale in China is larger than the one in February this year. During the February sale, the maximum discount was 1,150 yuan, around 13,242 rupees. This time, discounts have doubled, making it a more attractive deal for buyers. The most significant discount is on the 1TB iPhone 15 Pro Max, but other models have also seen considerable price reductions.

The reason for these massive discounts is to maintain Apple’s position in the high-end smartphone market, which is facing stiff competition from Chinese company Huawei. After the release of Huawei Mate 60 in August last year, Huawei has continued to pressure Apple by launching a new series of high-end smartphones called Huawei Pura 70 last month.

Reuters reported that the base model of the iPhone 15, with 128 GB storage, is being sold at a discount of 1,400 yuan, which is approximately 16,121 rupees. This move is seen as a strategic effort by Apple to boost its sales and regain market share in China.

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In March, Apple’s shipments in China increased by 12%, a significant improvement compared to the previous two months of 2024, where there was a 37% decline in sales. This rebound indicates a positive response from Chinese consumers to the price cuts and the new pricing campaign.

Apple’s aggressive pricing strategy in China reflects the competitive landscape of the smartphone market. Huawei’s continuous innovation and release of new models have forced Apple to reconsider its pricing to attract more customers. By offering such substantial discounts, Apple aims to stay relevant and competitive in one of the world’s largest smartphone markets.

Moreover, the discount campaign on Tmall highlights Apple’s reliance on online sales channels in China. Tmall is a popular e-commerce platform in the country, and offering discounts there ensures that a large number of potential buyers are reached. This move is crucial for Apple as it tries to leverage the extensive reach of Tmall to maximize its sales.

Apple’s decision to provide large discounts is not just a reaction to competition but also a strategic move to clear out inventory before launching new models. Historically, Apple reduces prices of its existing models ahead of new releases to make room for upcoming devices. This helps in managing inventory efficiently and keeping the product lineup fresh for consumers.

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