Apple's Discounts Boost iPhone Sales in China

Apple's discounts have boosted iPhone sales in China, with sales up 52% in the competitive market.

Apple’s Discounts Boost iPhone Sales in China

The smartphone giant’s sales are up 52% in China’s competitive market.

Smartphones in China

Foreign brands sold roughly 3.5 million smartphones in China last month, according to the latest data from the China Academy of Information and Communications Technology (CAICT), a research firm linked to the Chinese government. That’s up from about 2.3 million units in April 2023, a 52% year-over-year increase.

“The smartphone market in China is highly competitive, and Apple’s discounts have helped the company to stay ahead of its rivals.”

While the firm doesn’t explicitly mention Apple, the Californian tech giant is the dominant foreign smartphone maker in China’s market. As a result, the overwhelming majority of the increase in foreign smartphone shipments can be attributed to Apple.

Apple Store in China

Apple stock jumped almost 2% in pre-market trading Tuesday. April’s strong showing follows Apple’s solid performance in March. The company’s iPhone sales grew 12% in March compared to a year earlier and 37% compared to the first two months of 2024, according to the CAICT.

The improved performance comes as Apple has started offering discounts of up to $318 on some of its smartphones in an eight-day promotion that ends Tuesday. The company had relied on smaller incentives offered in January and February to boost sales as it struggled to match competitors with low prices and new technology.

Rivals like Huawei Technologies, Oppo, and Xiaomi, among other local firms, have been drawing away Chinese customers in recent months. Huawei, especially, has seen a resurgence after releasing its latest smartphone series, the Mate 60 Pro, which helped its profits double in 2023. The Chinese tech giant last month announced its new range of high-end smartphones, the Pura 70 Ultra.

Huawei Mate 60 Pro

Foreign shipments of smartphones were down 27% during the first quarter of 2024, a loss largely attributed to Apple. The company’s iPhone sales sank almost 10% year-over-year, according to the International Data Corporation.

However, Apple has surprised investors by surpassing expectations for revenue generated in the greater China region during its first quarter of 2024. The company made $16.4 billion, down from $17.8 billion year-over-year, but more than the $15.3 billion expected.

Apple CEO Tim Cook has said iPhone revenue in mainland China grew “on a reported basis” and reaffirmed the company’s commitment to the market.

Tim Cook in China