Apple reveals special discounts for iPhones in China
Apple has announced a temporary discounting strategy on its flagship products, including the Mac, iPad, and iPhone, in China as part of a Lunar New Year promotion. The discounts, which range up to 800 RMB ($112) for the Mac and 400 RMB ($56) for the iPad, are an unusual move for the tech giant, as it seldom participates in such sales.
The decision to lower iPhone prices follows the release of Huawei's Mate 60 Pro smartphone about five months ago. The popularity of Huawei's Mate 60 Pro raised concerns among US officials and sparked discussions about the current demand for Apple products in China.
Recent data indicates a 4.5% decrease in iPhone 15 sales compared to iPhone 14 sales in the first two weeks after its September launch. This decline in sales might be a consequence of economic challenges in China. Challenges in the country's economy over the past year have impacted Apple's overall growth.
Apple's temporary discounting strategy on its iPhone 15 and iPhone 16 models in China has led to a modest increase in shipments but has not stopped an overall decline in sales volume year-over-year. In Q2 2025, Apple shipped about 10.1 million iPhones in China, a 4% rise compared to the previous year, largely driven by aggressive price cuts (up to 30%) and newly qualified government subsidies due to lower price points. However, despite these gains, Apple’s year-over-year unit sales still declined 1.3% in the same quarter, marking the eighth consecutive quarter of decline in China.
The discounting strategy, including significant markdowns such as a 32% reduction on the iPhone 16 Pro from 7,999 yuan to 5,469 yuan, enabled some iPhones to qualify for additional government subsidies, bolstering short-term sales. Yet, analysts caution that such gains may not sustain through the rest of the year, and the approach risks diluting Apple’s premium brand image.
China contributes roughly one-fifth of Apple's overall sales. The company ranks second in sales globally for Apple, behind only North America. The discounted iPhone prices in China have sparked concerns about the long-term impact of the strategy, as well as the health of the market in China.
The drop in iPhone sales during the first week of the new year was reported by Jefferies Research, which also reported a 30% drop in iPhone sales. The promotion runs from January 18 to January 21.
Despite the challenges faced in China, Apple remains a dominant player in the global tech market. However, the company's recent ceding of its position as the stock market's most valuable company to Microsoft underscores the importance of maintaining a competitive edge in key markets like China.
In a recent statement, a Chinese government spokesperson refuted claims that China had prohibited central government officials from using iPhones. Despite this, the ongoing competition between Apple and Huawei, as well as broader economic and geopolitical challenges, will continue to shape the tech landscape in China and beyond.
The drop in iPhone sales, both in China and globally, can be attributed to the rise in popularity of Huawei's gadgets, such as the Mate 60 Pro smartphone, and the ongoing economic challenges in China. The temporary discounting strategy on Apple's smartphones, including the iPhone 15 and iPhone 16 models, has had a short-term impact on sales volume, but analysts warn that maintaining such discounts may dilute the premium brand image of these technology products.
