iPhone price cut up to 30% in important market

Users experience the iPhone 16 Pro at an Apple store in China. Photo: Reuters .

On major Chinese e-commerce platforms, iPhone prices are down by up to a third (equivalent to $346 ). This comes amid competition between Apple and domestic brands such as Huawei and Xiaomi.

While Apple has not officially cut prices, distributors are still widely discounting. In addition, the Chinese government runs a subsidy program of up to 500 yuan ( $70 ) for smartphones purchased under 6,000 yuan ( $831 ).

According to SCMP , the policy applies to people in about 30 provinces/cities, including Beijing and Shanghai.

The subsidies are intended to stimulate consumer spending and boost China's slowing economy, helping boost sales of mid- to high-end brands like Xiaomi and Huawei.

The high list price makes most iPhones in China ineligible for the policy. However, after the distributor reduced the price by 2,000 yuan ( $277 ), the selling price of the 128GB iPhone 16 Pro on JD.com and Tmall is only 5,999 yuan ( $831 ), qualifying for the subsidy.

Including discounts and subsidies, the iPhone 16 Pro's online price in China is 31% lower than Apple's listed price.

Some other models are also cheaper after the discount. For example, the iPhone 16 Pro Max was listed at 9,999 yuan ( $1,386 ) for the 256GB version. Currently, the price of the same version is only 8,599 yuan ( $1,192 ) on JD.com.

Local news site ITHome said that despite keeping the old price on the website, Apple has notified some distributors to reduce the price of the device by up to $176 .

Recent price cuts have made iPhones cheaper in mainland China than in Hong Kong, a popular place for mainland customers to buy iPhones and luxury goods at lower prices.

The iPhone 16 Pro, for example, starts at HK$8,599 ( $1,104 ). That's lower than Apple's listing price in mainland China, but more expensive than the discounted price on e-commerce platforms.

Even before the price cuts, some models like the iPhone 16, iPhone 16 Plus, and iPhone 16e were cheaper in mainland China than in Hong Kong.

iPhones are displayed at an Apple store in China. Photo: Bloomberg .

According to market research firm IDC , iPhone sales in China in the first quarter reached 9.8 million units, down 9% compared to the same period last year. Apple was the only brand in the top 5 in China to see a decline in smartphone sales.

Statistics from the China Academy of Information and Communications Technology (CAICT) also showed an alarming signal when sales of foreign-branded smartphones (including Apple) in March reached 1.85 million, down 49.6% compared to the same period last year.

According to DigiTimes , Apple is the leading foreign smartphone brand in China. The market share of foreign brands in March was only 8%, while domestic brands accounted for 92%.

To cope with the decline, Apple is said to be reducing prices on some iPhones, preparing for the 618 shopping festival in China.

In the tablet market, Apple is still behind Huawei. In the first quarter, the iPad market share in China fell 2 percentage points to 22.5%. Huawei's market share reached 34.5% (down 1.8 percentage points), while Xiaomi recorded a 4 percentage point increase, reaching 16.8%.

Source: https://znews.vn/iphone-giam-gia-manh-tai-trung-quoc-post1553177.html