Apple cuts iPhone 16 prices in China
Chinese e-commerce platforms are offering discounts of up to $351 on Apple's latest iPhone 16 models as part of a strategy to boost sales following a decline in shipments in the country. This move comes amid increasing competition from domestic brands like Xiaomi and Huawei, which reported shipment increases of 40% and 10%, respectively, in the first quarter of 2025. Apple's smartphone shipments in China fell by 9% during the same period.
The price cuts are particularly prominent on major platforms such as JD.com and Alibaba's Tmall, coinciding with the upcoming "618" shopping festival on June 18, one of China's largest sales events. For example, the iPhone 16 Pro with 128GB storage is now priced at 5,469 yuan, down from its official price of 7,999 yuan.
Apple's selective discounting strategy aims to attract cost-conscious consumers in a slowing economy, where local governments are also offering subsidies for certain handsets. Analysts suggest that these discounts reflect a shift in Apple's approach to align with changing consumer behavior in China, where value-seeking has become more prevalent amid economic uncertainties.
Despite these efforts, Apple faces ongoing challenges in the Chinese market, including competition from local brands that offer features tailored to local preferences, such as advanced AI capabilities. Additionally, Apple's integration of services like ChatGPT is limited in China due to regulatory constraints, which further impacts its appeal to tech-savvy consumers. Overall, Apple's aggressive pricing strategy is a response to regain market share and adapt to the evolving preferences of Chinese consumers in a highly competitive smartphone landscape.
