Apple Set to Offer Rare iPhone Discount in China as Sales Slow

Apple is set to cut up to 500 yuan ($70) – a rare large discount – on its iPhones in China, as competition intensifies in the world’s biggest phone market.

But the promotion – hailed as a Lunar New Year event – is limited-time offer that will last only four days, from January 18 to 21, in the lead-up to the national holiday the following month, according to its Chinese website.

Sales of Apple’s latest iPhone 15 series of handsets have been far worse than previous models in China.

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Home-grown rivals such as Huawei Technologies and Xiaomi have been offering competitive models, while sources have said some companies and government departments have been limiting staffers’ use of Apple devices – mirroring US government restrictions of Chinese apps on security grounds.

Chinese iPhone sales dropped 30% in the first week of 2024 versus the same period a year earlier, Jefferies analysts said in a client note, having fallen 3% for all of 2023. Analysts expect the competitive landscape to get tougher this year.

Apple has not cut prices for its latest iPhones in years. The cuts come after it surprised the market by not raising prices for the iPhone 15 series at its September launch.

Online shopping platforms including Pinduoduo have been slashing prices of the iPhone 15 and iPhone 15 Pro by as much as 16% since the beginning of the year.

Apple did not respond to a request for comment.