Apple offers iPhone discounts in China as competition intensifies

BEIJING, Jan 2 (Reuters): Apple is offering rare discounts of up to 500 yuan ($68.50) on its latest iPhone models in China, as the US tech giant moves to defend its market share against rising competition from domestic rivals like Huawei.

The four-day promotion, running from Jan. 4-7, applies to several iPhone models when purchased using specific payment methods, according to its website.

The flagship iPhone 16 Pro with a starting price of 7,999 yuan and the iPhone 16 Pro Max with a starting price of 9,999 yuan will see the highest discount of 500 yuan. The iPhone 16 and iPhone 16 Plus will receive a 400 yuan reduction.

The discounts come as consumers remain cautious with spending amid China's slowing economy and deflationary pressures, with the country's consumer inflation hitting a five-month low in November.

Apple is grappling with declining market share in China, the world's largest smartphone market, where local manufacturers have intensified competition.

Huawei has emerged as a particularly strong challenger since its return to the premium segment in August 2023 with locally-made chipsets. Huawei had cut the prices of a variety of high-end devices, including mobile phones, by up to 3,000 yuan over the weekend on one of China's leading e-commerce platforms.

Apple briefly fell out of China's top five smartphone vendors in the second quarter of 2024 before recovering in the third quarter.