Apple's Strategic Discounts in China: A Battle for Market Dominance

In a bid to retain its market share in China amid fierce competition from Huawei, Apple is offering rare discounts of up to 500 yuan on its iPhone models. This promotion aims to boost sales during a period of cautious consumer spending and economic slowdown in China.

Apple is taking unprecedented steps to maintain its foothold in China, offering discounts of up to 500 yuan ($68.50) on its latest iPhones. The four-day promotion, which runs from January 4-7, is an effort to counter rising local competition, particularly from Huawei.

Both the iPhone 16 Pro and the iPhone 16 Pro Max will receive the maximum discount, reflecting the company's response to a slowdown in consumer spending and China's deflationary pressures. This economic context is compounded by Huawei's aggressive pricing strategies, which have included slashing prices on premium devices.

While Apple briefly exited the top five smartphone vendors in China earlier this year, it recovered slightly by the third quarter. However, its market share continues to decline, with a 0.3% drop in sales compared to last year, while Huawei's surged 42%. Other Apple products like MacBooks and iPads are also part of this strategic discount initiative.

(With inputs from agencies.)