In response to Huawei, Apple launched a campaign to reduce iPhone prices in China

Smartphone manufacturers have been competing fiercely with each other for decades. In the past 2 years, Apple has done something contrary to other brands by increasing the average selling price for iPhones, taking advantage of the increasing popularity of Pro versions of phones such as iPhone 14 and iPhone 15.

Currently, Apple is facing the growth of Huawei in the Chinese market. Huawei phones are reviving and thriving at home, boosting sales of smartphones under the Android operating system in this country.

Apple responded to Huawei's threat by launching a steep price cut for iPhone 15 models in China, aiming to boost sales.

This discount program takes place within 9 days and the price is reduced more strongly than the discount in February 2024. On Apple's official store on the Tmall electronic shopping site, the Apple company offers a discount of up to 318 USD for some iPhone 15 models.

In addition to the deeply reduced price of iPhone 15 Pro Max 1TB, iPhone 15 Pro Max 256G is also reduced by 183 USD compared to the original listed price. The iPhone 15 128GB model is priced at $4,599, down from $5,999.

In China, the tech giant has become dependent on price cuts to boost iPhone 15 supply in the face of strong competition from Huawei's latest high-end Pura 70 series of phones, which has led to a Apple's recent sales decline.

Previously, Apple also made a price cut in February when it saw sales decline by 37% in the first two months of 2024. This reduction is said to be a response to growing interest in electric current. Domestic Mate 60 phone comes from Huawei.

Apple's price reduction in February was effective as iPhone shipments in China increased 12% in March. Many experts believe that it is very likely that Apple's price reduction strategy can be considered for implementation not only in China but globally.

Moreover, Apple's price reduction strategy is said by experts to be implemented not only on iPhone 15 but also on every new generation of iPhone within a period of 6 months before the next generation model appears.

Traditionally, Apple sells the most new iPhones in the first two quarters after launch. For the iPhone 15 model, Apple is most "expensive" in the Christmas quarter and March. Sales slow down as many iPhone buyers prepare for the next generation product series.

Experts say that the strategy Apple is using in China will most likely be implemented at random times in the international market. Apple may focus on selling new iPhones at the highest possible price between September and March.

The tech giant can then run all sorts of promotions to clear iPhone inventory before the upcoming generation arrives. These promotions can target people who are new to iPhone use or those who are not in the running to upgrade to new iPhone generations.

Apple could design these discounts to focus on more expensive models to keep the average selling price on target. A short-term price cut of the new iPhone line in the second half of the first year of launch could also help more people upgrade their phones faster than usual.

David Pac

Update 22 May 2024