Apple Under Pressure: How Rivals are Forcing the Tech Giant to Slash iPhone Prices in China
As the tech giant faces increased competition from local companies like Huawei, Apple has been forced to take drastic measures to stay ahead in the Chinese market. The company has recently launched a campaign of heavy discounting on its iPhone models on its Tmall site, with markdowns of up to 2,300 yuan (approximately $320) on select models.
Discounts on iPhones in China
This move comes as Huawei debuts its latest smartphone model, the Pura 70, and Apple faces a decline in sales in the greater China market. According to Apple CEO Tim Cook, the company’s iPhone sales in China had grown during the prior quarter, but the other products didn’t fare as well.
“What we saw was an acceleration from Q1, and it was driven by iPhone… The other products didn’t fare as well, and so we clearly have work to do.” - Tim Cook
The sale, which lasts until May 28, is larger than the one offered in February, when Apple was giving discounts of about half of its current offering. This move is seen as a desperate attempt to offset cooling sales in China, where Apple faces intense competition from local tech companies.
Huawei’s latest smartphone model
Apple has been struggling to bolster its business in China, where it faces rivals like Huawei, as well as a ban on iPhone use by employees of state agencies and government-owned companies. The company has spent the past year battling to stay ahead in the competitive Chinese market.
Apple’s struggles in China
In a recent article, PYMNTS’ Karen Webster examined the state of Apple, outlining the various setbacks the company has faced in categories like wearables, the Vision Pro, and its connected car project. Unless Apple has another transformative product innovation hiding up its sleeves, its growth is entirely dependent upon people buying the next generation of iPhone, upgrading them, and using them.
Apple’s growth dependent on iPhone sales
As Apple continues to face intense competition in the Chinese market, one thing is clear: the tech giant needs to innovate and adapt quickly to stay ahead of its rivals. Will Apple be able to regain its footing in China, or will local companies like Huawei continue to dominate the market?
