Discount of up to $250 on iPhone XS Max in China
In the competitive landscape of the Chinese smartphone market, Apple has taken a significant step to increase its sales by slashing prices on the iPhone 16 Pro lineup and participating in government subsidy programs. This move, initially made during the May 618 shopping festival, has resulted in a 8% year-over-year growth in iPhone shipments in Q2 2025, marking the first growth in two years [1][3][5].
Despite this rebound, Apple still trails behind Huawei, vivo, OPPO, and Xiaomi in the Chinese market. Huawei, with its HarmonyOS-powered devices and strong government support, continues to lead the market, fuelling growth amid rising anti-American sentiment and patriotic consumer preferences [1][2][3].
Chinese competitors, such as Huawei, vivo, OPPO, and Xiaomi, have also advanced their flagship devices with sophisticated hardware, AI features, and competitive prices, putting pressure on Apple's traditional premium market positioning [3]. The high price of the iPhone, combined with its perceived lack of innovative features compared to Huawei's smartphones, continues to be significant challenges in the Chinese market [1].
As a result of these factors, Apple's revenue forecast for the December quarter was revised down by 5.5 percent, leading to a 10 percent drop in Apple shares in the US stock market [2]. However, efforts to boost sales are ongoing, with discounts of up to $253 available on the second model of the iPhone on platforms like JD.com, Suning, and Pinduoduo [3][4].
In this dynamic market, it remains to be seen how Apple will continue to navigate the challenges and maintain its presence in China. One thing is clear: the competition from domestic brands with advanced technology and aggressive pricing will continue to pressure Apple's premium market positioning.
References:
[1] Bloomberg
[2] Reuters
[3] TechCrunch
[4] The Verge
[5] CNBC
- The slashing of prices on Apple's iPhone 16 Pro lineup, as seen during the May 618 shopping festival, echoes their participation in government subsidy programs, aiming to boost sales and compete with industry rivals in the retail market.
- In the Chinese market, despite Apple's growth in iPhone shipments, they still lag behind Huawei, vivo, OPPO, and Xiaomi, with Huawei's HarmonyOS-powered devices and strong government support maintaining their leadership position.
- Chinese competitors, such as Huawei, vivo, OPPO, and Xiaomi, have propelled their flagship devices, featuring sophisticated hardware, AI features, and competitive prices, thereby intensifying pressure on Apple's traditional premium market positioning in finance and technology.
- In an attempt to counterbalance these pressures, Apple offers discounts of up to $253 on the second model of the iPhone on platforms like JD.com, Suning, and Pinduoduo, indicating their continuous efforts to stay competitive in the rapidly evolving retail and technology landscape of the Chinese industry.
