With Chinese brand Huawei having risen from the ashes, a new report describes Apple heavily discounting iPhones in the country, offering up to $318 off the iPhone 15 Pro Max as it seeks to compete.
The latest round of discounts are much higher than those offered back in February, and really throws into contrast the US offer of slightly better trade-in values on older phones …
Apple versus Huawei: A quick history lesson
While Apple stuck with smaller-screened phones through to the iPhone 5s, Chinese consumers were busily buying larger-screened models – what were then known as phablets, a cross between a phone and a tablet. Huawei dominated the local market – until Apple launched the iPhone 6 in 2014, spurring intense competition between the two companies.
Things changed again when the the US government imposed sanctions on China, preventing the export of advanced US chips to the country. Among other things, that blocked Huawei from buying 5G radio chips for its smartphones. You can’t expect to sell many premium smartphones without 5G capabilities, so that saw sales of Huawei phones drop like a brick, with Apple by far the biggest beneficiary.
Fast-forward to last year, however, and Huawei somehow managed to obtain 5G chips and launch a new premium smartphone to compete with iPhone. That was such a surprise that even the White House National Security Advisor raised it as a concern. The development rapidly saw Chinese iPhone sales fall.
Apple heavily discounting iPhones in China
Apple introduced steep iPhone discounts back in February, offering savings of up to $180. But a Reuters report today says that the latest offers offer even bigger savings.
Apple has launched an aggressive discounting campaign on its official Tmall site in China, offering discounts of up to 2,300 yuan ($318) on select iPhone models […]
The increased competitive pressure on Apple comes after Huawei last month introduced its new series of high-end smartphones, the Pura 70, following the launch of the Mate 60 last August.
This latest offer runs for one week, from May 20 to May 28.
Reuters says the discount strategy appears to be working.
Apple’s shipments in China increased by 12% in March, according to Reuters’ calculations based on data from the China Academy of Information and Communications Technology (CAICT). This marks a significant improvement from the first two months of 2024, when the company experienced a 37% slump in sales.
US customers have no such luck, sadly – the best Apple will do is offer you slightly more on a trade-in.
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