American tech giant Apple’s iPhones are reportedly being sold at steep discounts of over US$100 in China, a notably large price decrease just months after launch indicating a waning demand for the company's flagship devices.
JD.com as well as China Mobile are among the sellers slashing the price of the iPhone 14 Pro by 800 yuan (US$118.02) over the course of 11 days. After visiting several stores throughout the city, the official China Securities Journal claimed that retailers in Shenzhen, the southern electronics hub, have started lowering prices for the same devices by 700 yuan (US$103.27). Meanwhile, Apple's regional website still sells products at the usual pricing.
The sales started around the time of the Chinese New Year when stores usually get ready for a holiday buying frenzy before classes resume. Though the duration of the sale is unknown, they indicate sluggish demand in the world's biggest smartphone market at a time when Apple is banking on a turnaround in China.
Surprisingly, the approximately 7% to 9% discounts on the iPhone Pro series match those on lower-end models, which are generally the first to be reduced.
Apple this week announced its first quarterly revenue decrease since 2019, citing sluggish worldwide demand in addition to output issues at its main manufacturing partner in China.
CEO Tim Cook, however, noted a recovery in the Chinese market, which had just loosened the stringent Covid-19 restrictions that had seriously damaged the country's economy.
Despite this, corporations like Samsung Electronics have cautioned that after a fall last year, smartphone sales are projected to decline again in 2023.
Apparently, Apple has stated that its performance would be like the December quarter even though it did not offer a comprehensive projection for the current quarter. Although the business has stated that iPhone revenue would increase in the March quarter, meaning that a revenue decline of roughly 5% may be in store.
According to analysts, shipments of the four iPhone 14 units during their first 38 days in the Chinese sector were 28% lower than those of the iPhone 13 series.