Although the iPhone was the only smartphone to show growth in China last Quarter, Apple is now discounting the iPhone in China to drive sales
An analytical report from Counterpoint in late January 2023 showed that Apple was the number one smartphone maker in China in Q4 and the only company to show growth for the Q4. With demand beginning to wane globally for electronic devices going into 2023, Apple is wasting no time to keep their edge in China.
The South China Poste (SCMP) is reporting this morning that Apple's stores on JD.com is offering discounts of up to 10.6% while some brick and mortar shops in Shenzhen sold out of some models.
More specifically, the report states that "Apple merchants in China are cutting prices for iPhone 14 models by up to 850 yuan (US$125) to boost sales, after the US tech giant reported a revenue decline in the December quarter due to supply-chain disruptions under Covid-19 controls and weak demand in the world’s biggest smartphone market in 2022.
Apple’s online stores on JD.com, China’s second largest e-commerce platform, showed a markdown of 800 yuan for the iPhone 14 Pro and Pro Max models on Monday, with an additional 50 yuan off if the buyer became a member of the online store. That works out to 10.6 per cent off the 7,999 yuan price of the 128GB iPhone 14 Pro.
Bricks-and-mortar resellers have also offered price cuts ranging from 600 to 800 yuan, with some of the most popular models sold out already. Shenzhen outlets of Chinese retail giant and authorized Apple reseller Suning were sold out of iPhone 14 Pro models with storage of 256GB or more on Monday, soon after the 800 yuan markdown was offered during the weekend, according to a sales representative
The price reductions come at a time when China’s domestic smartphone sales have dropped below 300 million for the first time in a decade, falling 13.2 per cent to 285.8 million in 2022, compared with 2021, according to market research firm IDC. For more, read the full SCMP report.