Apple Offers Discounts on iPhone and MacBook Air in China

Apple isn’t usually the type to offer discounts. However, the international electronics company made a surprising move that goes against its best practices. Hoping to regain ground in the competitive Chinese market, Apple is temporarily lowering the prices of some of its latest iPhones by $70 and some MacBook Air laptops by a whopping $112.

The four-day sale, which begins Thursday, is the company’s response to the lukewarm reception of the brand by Chinese consumers. The discount, ranging from 6% to 8% for the iPhones, reflects the difficulties Apple is experiencing in China. It’s an eye-opening strategy, shedding light on Apple’s struggles in a market increasingly leaning toward domestic brands amidst the escalating U.S.-China frictions.

The tech scene’s big players, Apple and Huawei, find themselves caught up in the ongoing technology war between the U.S. and China. The American government has barred federal agencies from purchasing Huawei equipment due to suspicions of the Chinese company’s close relationship with its government. They’ve also tried to discourage other nations from associating with Huawei.

China’s response was equally impactful, issuing instructions to its government employees to avoid using iPhones. This move, coupled with promoting homegrown brands, is a clear sign of intensifying tensions between both nations. All these developments don’t bode well for business. China, contributing one-fifth of Apple’s total revenue, is a massive market. The escalating tensions clearly spell out risk for the American tech giant.

China’s smartphone market experienced an overall decline of 3% in sales in 2023 due to its slowing economy — the only major economy that has slipped into deflation. People are cutting back on spending, and household savings have reached new highs.

Further challenges for Apple come from Huawei, which launched a smartphone with an enhanced camera, directly competing with one of Apple’s key selling points. Last November, Apple revealed a 2.5% drop in China’s sales, continuing the trend of decreasing sales over the previous year’s three quarters.

Interestingly, the discounts coincide with the Lunar New Year, a significant shopping period in China. Apple’s promotional campaign showcases a dragon image, composed of iPhones, Apple watches, and AirPods, signifying the upcoming Year of the Dragon in the Chinese zodiac.

The unexpected sale has sparked a debate on Chinese social media, and analysts are closely watching Apple’s strategic shift. Canalys, a market research firm, noted that while Apple’s sales in China fell last summer, it retains about 66% of the high-end smartphone market share. The firm also highlighted that iPhones under promotion seem to have sold out already.