Apple has reportedly reduced the price of its latest iPhones in China by over 150 USD after facing sluggish sales in the country.
Industry insiders and Chinese media outlets reported on Monday that Apple instructed Chinese retailers on May 10 to reduce the prices of the iPhone 16 lineup by more than 150 USD. This marks an unprecedented move by Apple to announce a price adjustment on a Saturday.
According to Chinese media, the price cuts amount to 1,313 CNY (approximately 182 USD) for all storage variants of the iPhone 16 Pro Max, while the base model iPhone 16 Pro now costs 1,445 CNY (approximately 200 USD) less.
This price reduction is seen as Apple’s preemptive strategy for the upcoming 618 Shopping Festival, one of China’s largest retail events that commemorates the founding of JD.com on June 18. This year, preliminary events will take place from Tuesday until May 28, followed by the main event from May 31 to June 20.
The reason behind Apple’s price reduction in China is the underperformance of iPhone sales in the country. Market research firm Counterpoint Research reports that Apple’s sales volume in China dropped by 7.7% year-over-year in the first quarter, pushing it down to fifth place in China’s smartphone market.
Chinese smartphone manufacturers are posing a significant threat to Apple with innovations in battery technology and cost-effective pricing. Moreover, escalating tensions between China and the U.S. since the second term of the Trump administration have led Chinese consumers to increasingly favor domestic brands like Huawei and Xiaomi over Apple.
In contrast, iPhone prices in South Korea remain steady, showing no signs of dropping. This is because Apple continues to gain market share in South Korea, Samsung’s home turf.
Counterpoint Research data shows that Apple captured 39% of the South Korean smartphone market in the fourth quarter of last year, up from 35% in the same period the previous year. Meanwhile, Samsung’s market share declined to 60%, a 4% drop year-over-year.
